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That mismatch between workers and manufacturing is an inefficiency that needs to be addressed as part of the company’s turnaround efforts, Schneider said. In a letter to employees last week, Chief Executive Paula Schneider blamed the workforce reduction on a "redesign of our production process" that will include making fewer garments throughout the year to cut down on inventory that eventually has to be discounted. The company has about 4,600 employees in Southern California.

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