The Apparel Analyst, 10 Nov 2008
HONG KONG – [10.11.08] Li & Fung Ltd, a company renowned for its high spending acquisition strategy, has implemented a series of cost cutting measures including a raft of redundancies and expenditure reductions.
Part of an overall review of its cost structure, the company has said it is reviewing its operating costs due to the impact that "worsening economic conditions" are having on its customers. Those jobs most likely to go are those employees working with business units whose customers have suffered most severely.
The move will come as a surprise to many who view Li & Fung as a predatory, cash rich sourcing giant. Growth – both organic and through acquisition - is never far from Li & Fung’s plans, a strategy that was given a firm boost recently with a HK$3.88 billion (US$497 million) investment from Temasek, the Singapore‘s government-owned investment company.
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Related News:
Li & Fung Shares Decline on Hiring Freeze, Cost Cuts (Update1) - Bloomberg, 10 Nov 08
