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Published
Oct 31, 2017
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Second round of layoffs announced by St. John Knits

Published
Oct 31, 2017

According to a recent filing with the California Employment Development Department, St. John Knits is planning to complete 72 layoffs by December. This follows a first round of 130 layoffs announced in June.



St. John Knits announced its first round of layoffs were part of a manufacturing restructure which would shift operations from its Irvine factory at its headquarters to other LA factories. The companyultimately planned to move production abroad, specifically to Mexico and Asia.

The June round of layoffs cut the Orange County-based manufacturing jobs of cutters, sewers and knitting machine operators, a blow to the company culture whose operations were founded on local vertical integration. According to a company spokesperson, this second round of layoffs follows the same strategy of moving manufacturing abroad.

While St. John Knits is a privately held company with limited visibility into daily operations, changes to manufacturing and layoffs indicate deeper unrest and future rebranding for the heritage brand. The company announced in September that it will move its Orange County flagship store from South Coast Plaza, where it had operated for twenty years, to Fashion Island in Newport Beach.

The company's plans for the Fashion Island store suggest the company is attempting to rebrand and find a new voice in the luxury knitwear market. St. John Knits plans to reveal a coastal beach-inspired retail space for Fashion Island which is slated to open in February.

The second round of 72 St. John Knits layoffs are scheduled to be completed by December 11.




 

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