LA based fashion company American Apparel has started the dismissal of 180 employees, about 2% of the brand’s total workforce, according to an information appeared on The New York Times. The biggest parts of these jobs affect the manufacturing sector in Southern California.

“We are disappointed that we had to make this very difficult decision, however, this is a turnaround,” American Apparel's CEO Paula Schneider said in a statement regarding the job cuts. “This change is meant to restore the financial health of American Apparel, which under previous management, saw losses of more than 300 million dollar over the past five years. This is a very sad day. It is very challenging to go down this route, but we have to conduct business differently in order to thrive.”

When asked about workers in its retail stores, Schneider said that the company hasn’t planned any staff layoff, but rather to grow the store side. She also pointed out that American Apparel continues investing in many business areas, for example within its design department.