3 Levi Plants to Close in Europe in Shake-Up

In a second major realignment of its international operations, troubled Levi Strauss & Co. said Friday that it is closing three European production plants, resulting in the layoffs of 670 overseas workers over the next six months.

Plagued by losses and a continuing decline of sales in the European jeans market, the San Francisco-based apparel maker said the realignment is the result of a review of operations that began last year.

“These actions are designed to reduce overhead, sharpen our focus and strengthen our performance in the changing marketplace,” said Thomas W. Tusher, chief operating officer. “We believe these measures will contribute significantly to improving the success of our European operations.”

The company said all but about $4.5 million of the estimated $16-million after-tax cost of the realignment will be covered by funds reserved in 1984 for future consolidations.

Last year, Levi laid off 5,000 when it closed 14 plants in the United States and five in Canada, England and France in response to a sharp downturn in jeans sales.

First Loss in 10 Years

In 1984, sales for Levi Strauss International fell 16% to $591 million from 1983, and the unit posted a loss for the first time in more than a decade. The parent company suffered an 8% drop in sales and a 79% decline in profits in 1984 from the year before.

Levi’s European group now consists of a Northern European division in the Wembley section of London and a Continental division in Brussels. Under the reorganization, a new “pan-European” division, headed by Rudolf Deutekom, now president of the Continental division, will market jeans and other products throughout Continental Europe, Scandinavia and the United Kingdom.

In addition, a newly created European development division will market jeans wear through secondary brands. Robin Dow, president of Levi Strauss Northern Europe, will head the division, which will be headquartered in Brussels.