Clothing manufacturer cuts 1,850 jobs in Australia

Clothing manufacturer Pacific Brands said Wednesday it would cut 1,850 jobs in Australia after reporting a first-half loss of 150 million Australian dollars (98 million US).

The company, whose brands include Bonds, Jockey, Clarks and Dunlop, said it would close most of its Australian clothing and manufacturing operations, making about 21 percent of some 8,800 employees redundant.

The announcement sent its share price tumbling 37 percent to 22 cents on the Australian stock market.

“We will discontinue some of our smaller labels and brands to reduce complexity and cost and divest some non-core businesses and facilities, some as going concerns,” chief executive Sue Morphet said in a statement.

“Unfortunately these changes will necessitate 1,850 job losses in Australia over an 18-month period, including 1,200 in clothing manufacturing.”

The economic climate remained challenging and uncertain, with consumer confidence at low levels, she said.

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Source:AFP,Sydney