Headwear maker New Era Cap Co Inc is temporarily laying off around 40% of its US workers over the next eight weeks in response to a slowdown in sales.

The company describes the layoffs as "seasonal," and says they have happened before.

It added that workers at its three domestic manufacturing plants in Alabama and New York State will be reinstated when orders pick up again.

The job cuts come as New Era makes efforts to expand its retail and private-label lines beyond headwear with the acquisition of Miami-based apparel manufacturer 5th & Ocean.

5th & Ocean is a privately held firm that makes sports and fashion apparel for men, women, and kids, with customers that include major US sports leagues and retailers such as Victoria's Secret/Pink.