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    Luxury Brands And Layoffs, Wave Of Layoffs Are All Related To Restructuring.

    2015/11/4 16:21:00 14

    Luxury BrandsLayoffsRestructuring

    In early October, nearly 2000 employees, German fashion group EscadaAG, announced that 200 people were laid off.

    The layoff is another disastrous performance of the company after its management has been confused and replaced by its CEO.

    Of the 200 layoffs, 150 were German headquarters staff, mainly concentrated in service and operation personnel. The company said it would focus on certain functions and therefore,

    Layoffs

    As early as June this year, the luxury industry experienced a wave of layoffs.

    This includes the traditional luxury group Ralph Lauren (Ralph Lauren) and the fast fashion cap group (Gap) and J. Crew Group Inc..

    Ralph Lauren group's growth slowed sharply in recent years. Local businesses were hit by the shrinking domestic consumption and fierce competition, and the brand image of the old brand also failed to attract the younger generation of consumers in the future.

    Retail environment

    It also weakened the profitability of the group.

    Ralph Lauren group had to restructure the company.

    Beginning in May, the group will eventually cut at least 750 full-time jobs, or 5% of the total number of employees.

    After releasing thirteenth consecutive months of declining sales data, the company announced that it would restructure the Gap brand and close the brand 175 North American stores, of which 140 will be closed in the current fiscal year, and the brand will also close the "very limited" shops in the European market.

    Customs offices also involve reductions in 250 jobs.

    In the past 5 quarters, J. Crew Group Inc. suffered losses in the four seasons, with a total loss of $1 billion 130 million 700 thousand.

    J. Crew Group Inc. also announced 175 layoffs in June.

    Escada AG chief operating officer and interim CEO J RG Wahlers said that the company's restructuring is to further satisfy consumers' recognition and demand for brands and products at every moment, as well as the company's multi-channel strategy.

    In its prime, Escada (Ace Cada) is one of the most famous high-end women's clothing brands in the world. However, the company gradually declined and filed for bankruptcy protection in 2009 years. After that, the daughter of Megha Mittal, founder of India steel giant Mittal, bought the troubled company, and Megha Mittal Mittal currently holds the position of chairman and CEO.

    Escada has not released detailed financial data for several years.

    According to the German newspaper Die Welt, in the past few months, Escada has seen a significant decline in its performance in Russia and China.

    Coincidentally, Roberto Cavalli SpA, Italy fashion luxury group, which has already sold a 90% stake in Clessidra SGRSpA, is facing a similar dilemma. Not only has it planned to sell property recently, it has also made layoffs in Italy.

    In order to repay debts, it recently sold a 145 million euro in Paris.

    Luxury brand

    Concentrate on the 7 floor property of Rue Saint Honore Saint orange road.

    It is understood that the layoffs are aimed at streamlining the structure and speeding up the reconstruction of the brand under the leadership of the new CEO Renato Semerari and the creative director Peter Dundas, appointed by the new boss.

    Roberto Cavalli SpA fired at the Osmannoro factory in northern Florence, cutting 70 of its 350 employees, and a small number of 70 employees in Milan headquarters were affected.

    However, the layoff caused the anger of employees and trade unions, and hundreds of employees protested outside the Osmannoro factory on October 27th wearing a lioness head mask that represented the struggle. On the same day, the Milan headquarters office also organized a demonstration.


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