Last year, Levi Strauss & Co. made the difficult decision to close our owned-and-operated apparel manufacturing plant in Plock, Poland, after 33 years of operation. Prior to the decision, we thoroughly evaluated various alternatives but could not ignore the reality of an increasingly difficult labor market, which posed significant challenges to hiring skilled workers and keeping the plant at full capacity, and a backdrop of steadily increasing costs of production due to inflation and rising energy costs. As we work across our supply chain to enable agility, manage costs, and support our long-term strategic objectives, we needed to find a more vertical model for the work that was being done at Plock. 

Consistent with our values and in accordance with all local laws and regulations, we provided comprehensive support to our departing team. Poland continues to be an important European market for LS&Co., which employs more than 250 people across the country, along with a network of 25 stores in total.