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Levi's Makers Have The Blues

As a symbol of America, Levi's jeans have always been instantly recognized around the world, just like Coca-Cola and McDonald's.

But the jeans that were once the uniform of American kids aren't such hot pants anymore. From now on, most Levi's won't even be made in the U.S. Last week Levi Strauss announced that it will close 10 U.S. plants in the next eight months. Some 5,900 Levi's workers in the U.S. will lose their jobs. More Levi's will be made overseas, where it's cheaper to run a factory. Levi's needs to cut costs. Its sales have been dropping.

"I've been working here for about 20 years," said Thomas Alvarado, 55, a Levi's worker at an El Paso, Texas, plant who will lose his job. "You know, it's like a family."

Brands like Gap, Old Navy and Tommy Hilfiger are taking over. Critics say Levi's missed some major trends, including cargo pants. But the company says it has big plans to get "cool" again.

Next: The Big Fix-Up