Gianni Versace SpA has confirmed it will cut 350 jobs as part of a plan to return to profitability by 2011
By Jennifer Denby
Luxury Italian label Versace is closing in on an agreement to cut 350 of its 1,360 positions worldwide, equating to more than 25 percent of its workforce.
The cuts, which will commence in March and end in June, are designed to safeguard the company's future.
According to Gian Giacomo Ferraris, CEO at Gianni Versace SpA, the decision to restructure the brand and scale down investments was unanimous, despite the inevitable job losses.
“The aim of the restructuring is to stabilise the company to maintain independence and to have the basic condition to create a future in the company,” Ferraris said.
Ferraris forecast “positive” earnings before interest, taxes, depreciation and amortisation and revenue unchanged at approximately 270 million euros in 2010.
In 2011, Ferraris anticipates the firm will “break even on the bottom line”, adding that forecasts were “realistic” and allowed for his belief that “the economy will not pick up” this year.
LOWER-PRICED LINE
Furthermore, Versace is introducing a new lower-priced womenswear collection as part of the arrangements.
The new line, priced between 400 euros and 1,000 euros, will be the women’s ready-to-wear complement to Versace’s lower-priced men’s line.
Edited by Ellie Duncan