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VF plans restructuring
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February 11, 1997: 9:37 a.m. ET
Jeans maker to eliminate jobs, merge divisions over four-year period
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NEW YORK (CNNfn) - VF Corp., maker of Wrangler and Lee brand jeans, plans to announce a restructuring effort Tuesday that includes a reduction of the company's workforce.
A company spokeswoman told CNNfn the restructuring would include job cuts, but she declined to comment on specifics ahead of the announcement.
Published reports Tuesday said the company will shed between 2,000 and 3,000 workers over four years from its 65,000-member work force.
The plan also reportedly consolidates manufacturing and administration while updating core product lines.
The move is expected to cost a total of $400 million and yield about $150 million in annual savings by 2000, VF chief executive Mackey McDonald told The Wall Street Journal.
VF reportedly plans to spend $250 million in the next four years to fund new advertising and consumer research.
One big change reportedly involves offering custom-fit jeans through undisclosed proprietary technology starting in June. Levi Strauss & Co. started offering the service several years ago.
The restructuring comes in response to slow sales growth after retailers have faced back-to-back years of weak holiday and back-to-school shopping seasons.
VF posted 1996 revenue of about $5 million. The company also produces playwear, intimate apparel and specialty clothing under labels including JanSport and Vassarette.
Shares of VF close at $68, down 12.5 cents, Monday on the New York Stock Exchange.
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