Textile Giant Burlington Industries to Cut 4,000 Jobs in U.S., Mexico

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Textile Giant Burlington Industries to Cut 4,000 Jobs in U.S., Mexico

CHARLOTTE, N.C. (AP) - Burlington Industries, once the world's largest textile maker now in bankruptcy protection, plans to cut 4,000 jobs and five plants in the United States and Mexico. Announcing the actions Thursday, the Greensboro-based company cited competition from cheaper foreign imports and an uncertain economic outlook.

The reorganization of Burlington's apparel fabrics business will mean 2,800 layoffs in the United States and 1,200 more in Mexico - 36 percent of the company's work force of about 11,000 people.

The plants to be closed or sold are in Mount Holly, N.C.; Stonewall, Miss.; Halifax, Va.; Clarksville, Va.; and Aguascalientes, Mexico.

"Continued pressures from foreign imports and unfair trade practices coupled with slowing and uncertain economic conditions have made it necessary for us to further reduce our U.S. capacity," said George W. Henderson III, chairman and chief executive.

The company said it would take restructuring charges in the first and second quarters of fiscal year 2002 to cover the costs of the job cuts and plant closings.

Founded as Burlington Mills before World War I, the company grew quickly in the years following World War II. By 1980, it was the world's largest textile producer.

In recent years, Burlington has trimmed unprofitable subsidiaries and slashed costs to compete against cheap imports.

-- Anonymous, January 10, 2002


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