Defend Truth

Versace to fire a quarter of workforce as recession bites

It seems even the very rich are feeling the pain of global recession - or certainly the highly aspirant are. And that means those stuck in the middle will pay. Milan’s Versace Group is to slash 26% of its workforce worldwide, so it can return to profitability in 2011. The fashion house will close three shops in Japan, which it intends to reposition and then re-open next year. Greater China, including Hong Kong and Taiwan, is still going swimmingly, but the unlisted “haute couture” outfit has felt the pinch of rising operating costs since 2006, and expects a loss of about $45 million in 2009, with 2010 results “flat” at best. By 2011, however, it expects to be growing by about 3% or 4%. In the meanwhile, 350 staff of about 1,360 will fall off the catwalk by the middle of next year. According to The New York Times, big boss Gian Giacomo Ferraris, says: “In this business, you can’t just wait for the economy to pick up. You have to be a trendsetter.” However, some of its deep-pocketed rivals are doing much better, with shares in Moët Hennessy Louis Vuitton (LVMH ) up 45% this year. That’s trend-setting at its best. Read more: The New York Times


Please peer review 3 community comments before your comment can be posted

MavericKids vol 3

How can a child learn to read if they don't have a book?

81% of South African children aged 10 can't read for meaning. You can help by pre-ordering a copy of MavericKids.

For every copy sold we will donate a copy to Gift of The Givers for children in need of reading support.

A South African Hero: You

There’s a 99.8% chance that this isn’t for you. Only 0.2% of our readers have responded to this call for action.

Those 0.2% of our readers are our hidden heroes, who are fuelling our work and impacting the lives of every South African in doing so. They’re the people who contribute to keep Daily Maverick free for all, including you.

The equation is quite simple: the more members we have, the more reporting and investigations we can do, and the greater the impact on the country.

Be part of that 0.2%. Be a Maverick. Be a Maverick Insider.

Support Daily Maverick→
Payment options