Schneider was, however, a controversial figure among employees, who protested at her decision to make 500 members of staff redundant in April. At the time she said that the redundancies were as a result of the "redesign of our production process" after "months of careful and rigorous review". She also hinted that as a part of the shake-up, production may be exported, as opposed to being made in Los Angeles - something which was a cornerstone of founder Dov Charney's original business plan.
Chelsea Grayson, the company’s general counsel and chief administrative officer, is said to be Schneider's replacement and will officially take on the job on October 3. Her focus is said to be “to continue to try to draw that Millennial customer into the store".
“She certainly knows what’s going on there,” said California Fashion Association president Ilse Metchek of Grayson. “She’s been a partner since Paula took over and she knows the company.”
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