A government inspection has found that around 1,600 employees of the Los Angeles based, American Apparel are working without proper work permits and were also unable to prove their immigration status.
This means that all these employees of American Apparel will lose their jobs. There are 200 more employees who were found to have been using fake social security cards, who could also end up facing the axe.
All these employees are working at the manufacturing unit of the company in downtown Los Angeles and account for more than 15 percent of the 10,000 personnel employed by the company across its operations.
American Apparels does not anticipate any productivity losses due to these terminations as it already hold high inventory level of stocks and also due to the slowdown in sales In US markets, due to the recession.
Earlier, the company had to bow down to pressure and recall an advertisement published in an UK based magazine on a complaint filed by a person, who found the advertisement to be highly provocative.
Fibre2fashion News Desk - India
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