Versace to cut quarter of workforce

| October 28, 2009 | 0 Comments

Italian luxury fashion house Versace is to eliminate 350 jobs (around 25% of its workforce), due to a slump in demand for luxury and designer goods.

The jobs will be cut worldwide and completed by the middle of 2010 and are part of a strategic review of its stores.

The group, which employs 1,360 staff across its boutiques, is struggling amid the economic downturn and reported that quarter one sales were down 13%.

Chief executive, Gian Giacomo Ferraris, said: “Trading conditions in the wake of the global financial crisis have been severe and the company expects to make a loss in 2009. No organisation can allow a situation like this to continue.”

Earlier this month, the fashion label said it was withdrawing its presence from the Japanese market after almost three decades.

However, in the last three years, it has expanded its presence in China and Dubai and plans to have new stores in New Delhi, Australia and Las Vegas by early next year.

The group is one of the world’s leading international fashion houses. It designs, markets and distributes luxury clothing, accessories, fragrances, make-up and home furnishings under the various brands of the Versace Group.

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