Levi to Lay Off 1,100 When It Closes Texas Plant

Levi Strauss & Co. will drop 1,100 employees from its payroll when it closes the largest of its three San Antonio facilities April 16, the clothing manufacturer announced Wednesday.

The San Francisco-based company is shifting sewing from the plant to outside contractors in an attempt to increase manufacturing flexibility while cutting costs, said John Onoda, director of corporate communications.

“We operate in a highly competitive industry,” said Peter L. Thigpen, senior vice president of operations. “And we are continually assessing how we can offer our retail customers high-quality products at the best price.”

In a prepared statement, Thigpen said company executives decided to stop making men’s slacks at the South San Antonio plant after an evaluation convinced them that it would be cheaper to let foreign contractors make the pants.

But Thigpen said the company clings to its longstanding policy of making the bulk of its products in the United States.

“More than 90% of Levis jeans and more than 75% of all Levi’s products sold in the U.S. are still made in the United States,” Thigpen said.

Pants such as Dockers, the main item produced at the San Antonio sewing facility, still will be made at three smaller U.S. plants.

Levi Strauss & Co. bought the 187,000-square-foot plant in 1981. The plant also produces sports coats, but Onoda said sport coat production is already being phased out because of declining retail interest.

After the closing, Levi Strauss & Co. will operate 27 sewing facilities in the United States. The company is the world’s largest apparel manufacturer.