After months of negotiations with unions, Hugo Boss has finally closed its factory in Cleveland, Ohio, thereby cutting 300 jobs. These job cuts will take place between now and April.

Hugo Boss

The German fashion house stated that the closure was motivated by a “lack of user capacity and competitiveness of the factory”, also highlighting that it produced “only two different styles of men’s suits and no items of ‘fashion’”. Hugo Boss specified however, that “salaries will be paid to employees until the month of April even if sales see a very strong decrease.”

According to the unions, Hugo Boss wanted to outsource its production to Turkey, Romania and Bulgaria where labour cost is lower. Hugo Boss is continuing its negotiations regarding the manner of redundancies and eventual reassigning of staff.

By Jonathan Fulwell (Source: Sarah Ahssen)