The American fashion company has announced that it would cut 15 per cent of its global workforce before the end of the fiscal year.
The brand, which has become a luxury powerhouse, operates 530 stores across the globe with a workforce of around 24,900 employees and the news of the job cuts is expected to impact as many as 3700 employees. The luxury sector has been hit particularly hard as consumers have limited the amount of unnecessary spending for high-end produce such as handbags, apparel and accessories.
The company, like many other retail brands has commented that it intends to move more of its business online. Other luxury retail brands have enjoyed a surge in sales from their online operations.
Chief Executive Officer Patrice Louvet commented: “The changes happening in the world around us have accelerated the shifts we saw pre-COVID, and we are fast-tracking some of our plans to match them.”
The company expects to incur a one-off charge of around $160M regarding the lay-offs but hopes to save around $180-$200M each year following.
