The U.S. clothing and footwear giant A&M is cutting 2,500 jobs, including about 1,200 in Mexico, as part of a wider effort to cut costs and improve efficiency.

The company said it plans to lay off about 5,500 people in the U.K., France, Germany and Italy as part for “business efficiency.”

In a statement Friday, A&am said the layoffs are necessary to support its transformation and to further align its operations in the United States and worldwide.

In March, the company announced plans to close two factories in the Mexico City area.

A&m has said it has no plans to expand outside the United Sates.

The cuts come as A&ams global apparel and footwear business has been suffering under a wave of layoffs in recent months, and some of the jobs are due to retirements.