Home / Knowledge / News / Apparel/Garments / G&K announces further expense reductions
G&K announces further expense reductions
Jan '09
G&K Services Inc, a market leader in branded identity apparel programs and facility services, announced that it reduced its North American workforce by approximately 340 positions and also eliminated approximately 120 currently open positions. These steps further adjust the company's cost structure in response to lower customer volumes and the expectation of continued weakness in near-term economic conditions. The company noted that these actions will not impact the company's continued focus on providing excellent service to customers.

"While decisions to eliminate jobs are difficult, we've taken additional actions to further streamline our operating costs," said Richard Marcantonio, G&K's chairman and chief executive officer. "As we've stated before, we continue to manage our cost structure, realign staffing and control non-revenue generating expenditures in advance of increasingly difficult economic conditions. Our strong balance sheet, cash flow and business model, combined with these additional proactive actions, strengthens our position during this economic downturn as we continue to execute our strategic plan to emerge an even stronger company when economic conditions improve."

As a result of the workforce reduction announced today, the company anticipates annual savings of approximately $14.0 million. The company will realize partial savings in its fiscal 2009 third quarter due to reduced compensation costs, offset by severance and outplacement expenses. Moving forward, the company expects to realize the full positive quarterly savings, beginning in its fiscal 2009 fourth quarter.

Today's announcement does not have a financial impact on the company's fiscal 2009 second quarter results ended December 27, 2008. The company's fiscal 2009 second quarter earnings release and conference call are scheduled for Tuesday, January 27, 2009, at which time the company will discuss its financial results for the second quarter and provide further details on today's announcement.

G&K Services Inc is a market leader in branded identity apparel programs and facility services in the United States, and is the largest such provider in Canada. Headquartered in Minneapolis, G&K Services has approximately 9,500 employees serving more than 175,000 customers from over 170 facilities in North America and Europe.

G&K Services Inc

Must ReadView All

Courtesy: Myntra

Apparel/Garments | On 3rd Dec 2016

Myntra to be EBITA positive by FY18: CEO Narayanan

Myntra is on track to achieve sustainable growth and be EBITA...

Courtesy: India ITME Society

Textiles | On 3rd Dec 2016

India ITME 2016 opens with over 1050 exhibitors

The India International Textile Machinery Exhibition (India ITME)...

Courtesy: Bruckner

Textiles | On 3rd Dec 2016

Indian textile companies opt for Brückner stenter lines

Indian textile firms Laxmipati Sarees, makers of polyester sarees and ...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Veronique Lee

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Advanced Search