American Apparel To Lay Off Over 1,500 People

Filed Under: Icky Icky Poo Business Blitz American Apparel

Two months ago, when American Apparel was under inspection, the government discovered 1,600 illegal workers plus an additional 200 whose work papers had problems (big problems, such as faked social security numbers).

As a result, the company now has to fire the illegal workers, a troublesome 10% of the company's total workforce. American Apparel's lawyer, Peter Schey, said on behalf of American Apparel that they are "very disappointed and disheartened at having to terminate a very large number of workers who, by and large, have been reliable contributors to the success of the company."

Dov Charney, American Apparel's CEO, told employees that those who returned with legal working status would be given preference for new positions with the company.

After this, and this, it's been a rough couple of months for American Apparel!

[Image via AP Images.]

Posted: September 3, 2009 at 6:00 pm