Garment trim manufacturer Tag-It Pacific Inc. announced Wednesday it had laid off 171 people 59 percent of its employees in the last two months as part of its previously announced restructuring plan to reduce operating costs.

Tag-It announced the restructuring in its second-quarter earnings report in August when it reported a net loss of $11.3 million on revenue of $18.5 million for the April-June period.

“We have made and continue to make significant progress towards our previously stated goal to reduce our current operating costs by approximately 25 percent to 30 percent, or $5 million to $6 million,” said newly appointed chief executive Stephen Forte, in a statement announcing the job cuts and other restructuring news.

The company is an outsourced distributor and manufacturer of a range of trim items, such as stretch waistbands and zippers, to fashion apparel manufacturers and specialty retailers. It owns and distributes the Talon zipper brand.

The company had reported that its second-quarter operating expenses shot up 233.9 percent to $11.7 million, blaming much of the costs to a $6.4 million increase in the reserve for hard-to-collect “doubtful accounts,” hiring to expand its sales force and higher legal costs associated with a lawsuit it lost against Pro-Fit Holdings Ltd. over elastic waist band technology.

As part of the restructuring, Tag-It has stopped operating in Mexico, shut down a warehouse in Gardena and a factory in North Carolina, changed management and sales staff compensation plans and pursued joint ventures with manufacturing partners in China.

Shares of Tag-It closed unchanged at 46 cents Wednesday.