Unifi announces profitability improvement plan, headcount reductions

Unifi announced that it has begun the implementation of a new Profitability Improvement Plan, focused on further reducing the Company’s costs, streamlining operations, and investing in innovation. The Company also announced new executive officer appointments to critical roles. Profitability Improvement Plan includes: Cost reset and headcount reductions that are expected to lower expenses by $10 million to $15 million annually; Sales transformation initiatives focused on improving efficiencies and processes expected to bolster operating margins by $6 million annually; Savings are expected to be invested into margin accretive opportunities and product innovation for REPREVE and will be used to strengthen the Company’s financial profile beyond actions taken to date; A.J. Eaker promoted to Executive Vice President and Chief Financial Officer; Meredith S. Boyd promoted to Executive Vice President and Chief Product Officer; Brian D. Moore promoted to Executive Vice President and President of Unifi Manufacturing; Gregory K. Sigmon promoted to Executive Vice President, General Counsel and Corporate Secretary, with expanded leadership responsibilities over Sustainability and Government Affairs functions. “In recognition of the current operating environment, we recently implemented an extensive Profitability Improvement Plan to optimize our resources,” said Eddie Ingle, CEO of Unifi, Inc. “While this Plan came with difficult decisions, these measures will significantly improve profitability, helping to ensure UNIFI has a robust foundation to foster growth and innovation, core tenets of the Company’s strategy. Additionally, the transformation of our sales processes will serve as a direct catalyst to improve gross margins and operational efficiencies. Savings from these initiatives will be reinvested in the business, first in areas that should help us accelerate growth as demand levels reach the expected rebound across our industry in calendar 2024, and then to bolster the our balance sheet and already strong financial profile.”