Polyester and nylon yarn producer Unifi Inc is to axe 25 jobs as it continues a streamlining exercise to cut costs.

The company, which has shut two plants since April, said it will reorganise certain corporate staff and manufacturing support functions to further reduce costs and achieve its financial goals.

At the start of this month Unifi terminated the contract of its chairman, president and CEO Brian R Parke. He had been president of the company since 1999, CEO since 2000 and chairman since 2004.

The next day Unifi said it would close its Kinston, North Carolina facility with the loss of 260 jobs. In July, the company announced plans to close a recently acquired texturising facility in Dillon, South Carolina with the loss of 355 jobs.

The cost cutting comes after the company widened its fourth quarter net loss to US$72.3m, from a loss of $5.4m in the prior year quarter. For the 2007 fiscal year, net loss widened to $113.1m, from $14.4m during the previous year.

Combined reductions are hoped to lower costs by approximately $8.0m in the current fiscal year, Unifi said. It will accrue a severance expense of approximately $3.6m for the quarter ended in September, which includes $2.4m in connection with Parke's termination.

"It is imperative that we continue to match our support costs to the size of our current business," said William Lowe, Unifi's chief operating officer and chief financial officer.

The company also intends to outsource certain raw materials to provide flexibility for its polyester production facilities.