Pacific Brands (ASX:PBG) chairman James MacKenzie has defended the company’s decision to cease clothing manufacturing in Australia and New Zealand, laying off more than 1,200 employees in the process.
“Pacific Brands was the last major Australian company still manufacturing clothing in any significant capacity onshore,” he told investors at the annual shareholder meeting.
But the company decided to cease onshore production after a recent strategic review highlighted the cost savings that could be achieved, he said.
McKenzie said the company will do all they can for the redundant employees, including giving them up to 60 weeks notice and providing up to $3,000 worth of retraining and three weeks’ paid leave while they are still in their current jobs.
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