Things seem to be going from bad to worse for European designer label Versace. Not even a month after the brand announced the closure of its Japanese stores comes news that 350 jobs will be cut.
The positions will be cut from Versace’s international talent pool by the middle of next year. Just like the closure of the Japanese stores, the measure is part of the cost-cutting initiatives essential for the brand to stay afloat during the financial crisis.
The Wall Street Journal reports that Versace is expected to lose €30 million before tax on a revenue of €273 million. Compare this to the brand’s €9 million profit on sales of €336 million just 12 months before.
The good news for fashion fans is that Versace remains committed to new runway designs. It will trim the fat in the areas of production, distribution, and logistics. Whatever steps the label takes, I hope they’re enough to help it weather the financial storm.
[Image Source: Marek Ślusarczyk/Wikipedia Commons]
