Hundreds to be laid off as America’s most popular jeans company permanently closes location

Levi Strauss & Co. is axing hundreds of jobs by closing a distribution center in Hebron, Kentucky.

The company, known worldwide for its iconic denim, is axing 346 jobs as a result of the closure.

The layoffs are expected to begin on August 18 or during a 14-day period beginning on that date.

Some employees will have the opportunity to work at another location, Retail Dive reported. 

The center shutter comes a year after Levi’s changed its distribution strategy from owned and operated models to a mix of owned and third-party centers.

The revamped centers are used to store and ship products to the brand’s wholesale, department store, and e-commerce shoppers.

The company, founded in 1853, has produced Levi’s jean products for over 170 years, and has collaborated with celebrities like Justin Timberlake, Beyoncé and Hailey Bieber. 

Now that the Hebron center is closing, these products will be made in one of more than 10 distribution centers, some of which are in Ohio and Nevada.

Levi Strauss & Co. is laying off 346 workers by closing a distribution center in Kentucky

The layoffs at the famous denim company  are expected to begin on August 18 or during a 14-day period beginning on that date

Levi’s is one of a string of companies to announce layoffs in recent weeks. 

UPS said earlier this month it is offering voluntary buyouts to its full-time US drivers following its decision to slash 20,000 jobs and close 73 facilities.

And America’s second-largest alcohol distributor said it is laying off more than 1,700 employees after announcing it is pulling out of business in California.

Republic National Distributing, a once-dominant company that linked famous beer and vodka brands with local bars, filed paperwork to lay off 1,756 employees. 

Levi’s, meanwhile, has undergone many changes over the past year, including its deal with a third-party logistics provider to open its Ohio distribution center.

But the changes did not stop the company from increasing its first quarter revenue by 3 percent in the period ending March 2.

‘We exceeded revenue and profitability expectations in Q1 marking a strong start to the year, another proof point that our transformation strategy is working,’ said Michelle Gass, president and CEO of Levi Strauss & Co.

‘The Levi’s brand is stronger than ever, and we will continue to fuel this momentum through a robust product pipeline and by keeping the brand firmly at the center of culture across the globe.’

Hailey Bieber and Beyoncé participated in highly publicized Levi’s ad campaigns 

The company will announce its second quarter results on Thursday. 

It comes as Levi’s featured Beyoncé in its latest campaign, which received positive reviews on social media.  

Many retailers have been struggling and laying off workers in recent months. 

Macy’s is shuttering 66 stores this year after announcing its plan to close 150 locations by 2026.

The company laid off 79 employees earlier this year after closing a facility in California.

JCPenney has been in trouble for years, even before its 2020 bankruptcy filing.

The retailer’s plan was to close 30 percent of its stores to pay off debt and it is now preparing to shutter its Alliance Supply Chain facility in Texas.

Because of this closure, nearly 300 employees will be losing their jobs from layoffs that are scheduled to begin on August 1.

Levi Strauss & Co. declined to comment about the Hebron closure and other potential distribution center shutdowns.