The 1990s saw widespread downsizing of the American textile industry overall in the wake of North American Free Trade Agreement and General Agreement on Tariffs and Trade. In 1995 Chairman Farley announced that the company would close six plants in the Southeastern United States, and cut back operations at two others. Operations were moved to cheaper plants abroad. 3,200 workers, or about 12 percent of its American work force, were laid off. Farley also announced that company earnings fell 22 percent, despite a 10 percent increase in sales.