US - In a bid to cut costs Russell Corporation (Russell) has annouced it is freezing its current defined benefit plan in favour for "significantly improving" its 401(k) scheme.
Amongst other plans, Russell also said it will scrap 2,300 positions globally, including 1,700 in the US, of which approximately 1,200 will be replaced in Honduras and Mexico.
Reports claim the company recently lost a contract to sell fleece products for boys to Wal-Mart, the world’s largest retailer, leaving Russell with too much manufacturing capacity.
Chairman and CEO Jack Ward said: “We are making these structural changes in our business to remain competitive in today’s global market place.”
The textile manufacturer claimed the fter tax cost of restructuring would run to between US$45m and $52m.
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