Danier Leather reduces manufacturing capacity
08/04/2009
Its cost-cutting measures will include 22 job cuts at its head office, where 130 people are currently employed. Danier will also reduce its domestic manufacturing capacity by approximately 50% resulting in a workforce reduction of approximately 56 employees. The workforce reduction is anticipated to reduce Danier's domestic manufacturing cost base by approximately $1.3 million. Approximately 13% of Danier's garments are produced at its manufacturing facility in Toronto.
According to the firm, its domestic manufacturing process has been reengineered to be more flexible and allow for faster turnaround. In addition, capacity can be scaled up should volume requirements increase in the future.
Jeffrey Wortsman, president and chief executive officer, said: "In light of the current uncertain business and economic environment, we are taking the necessary steps to reduce our costs while continuing to execute our strategy of providing our customers with exciting merchandise at remarkable prices and value.
"The company remains committed to work towards achieving sustained profitability. In addition to these initiatives, other expenses will be examined with a view to maximising operational efficiency at Danier."
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