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Working Conditions

Plant Closures and Downsizing

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Plant Closures and Downsizing 

In 2016, we continued to increase our manufacturing and distribution capacity, including the ramp up of our Mocksville yarn-spinning facility in the United States and the addition of manufacturing sites in Agua Prieta, Mexico and in Hildebran, North Carolina through the acquisitions of Alstyle Apparel and Peds Legwear. 

The Company also underwent minor restructuring of some of its operations in 2016, in an effort to optimize processes across the business to accommodate our continued growth. Also, following the two acquisitions, there were some readjustments necessary to ensure a streamlined transition into our business.

We regret the impact these consolidations had on our former employees, their families and their communities. The Company made every effort to ensure that employees were treated fairly and with respect and received the necessary support during this transition. 

At the end of 2016, our total headcount was 48,555 employees compared to 42,818 employees the previous year. Here is an overview of the organizational changes in 2016 which had the highest number of impacted employees:

Branded Apparel Restructuring 

  • Gildan closed 23 of its Gold Toe® Outlet stores across the United States on June 30, 2016.  This consolidation of the Gold Toe® retail stores was part of an overall strategy to restructure our direct-to-consumer channels, which included reinvesting in the remaining stores and our online sales strategy.  The decision to close specific stores was based on a business review that showed these locations were not meeting the financial goals for the Company’s retail business.
  • During our integration of Peds Legwear into Gildan’s global Branded Apparel organization, the Company identified the optimal way to combine the two organizations to ensure that we were operating in a cohesive way and leveraging strengths in the different areas of the business.  As a result, there were 38 employees impacted in the elimination of overlapping positions in sales, finance, merchandising, marketing, design, product development and operations.  Within this reorganization, the Peds’ Montreal Head Office was closed on December 31, 2016. 

Restructuring in Asia

  • In an effort to improve the efficiency of our Asian sourcing operations, Gildan consolidated and centralized its Shanghai sourcing operations within its Hong Kong sourcing office.  This resulted in the closure of the Shanghai sourcing office effective March 16.  The services of the Shanghai sourcing office were transitioned to a centrally-located region which offers increased access to the broader Asian market, and also offers a large talent pool for further expansion.

Distribution Centre Closures

  • Following the acquisition of Alstyle, the Company identified a need to streamline the number of distribution centres within the Gildan network given the addition of Alstyle’s distribution footprint.  The Company took the decision to consolidate its Dallas and Philadelphia distribution centers into its existing east coast fulfillment center located in the US.  The Dallas distribution centre closed on September 30, 2016 and the Philadelphia distribution centre closed on October 31, 2016.

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