ATLANTA — Unifi, Inc. said Wednesday that it will reorganize certain corporate staff and manufacturing support functions to further reduce costs and achieve its financial goals.
As a result, Unifi, which fired its CEO, Brian Parke, at a board meeting on August 1, is cutting 25 jobs. The laid-off employees, who will receive severance packages, are in Unifi’s corporate office and manufacturing locations.
Combined with previous cost reductions this quarter, Unifi said it expects to reduce its support costs by approximately $8 million in the current fiscal year, or $9 million on an annualized basis. Unifi will accrue a severance expense of approximately $3.6 million for the quarter ended in September, which includes severance of $2.4 million in connection with the termination of Parke.
William Lowe, COO and CFO, said in a statement, “It is imperative that we continue to match our support costs to the size of our current business. We absolutely must institute a cost-conscious culture.” He added that Unifi’s overall corporate strategies remain unchanged.
Parke now is serving as vice-chairman of Unifi’s Chinese joint venture, Yihua Unifi Fibre Industry Company Limited. The company is searching for a permanent CEO, while board member and shareholder Stephen Wener serves as the new chairman and acting CEO.
Parke was fired the day before Unifi reported a year-end loss of $113 million and announced it would close its Kinston, N.C., plant.