Brioni, the renowned fashion house, is facing economic challenges as it continues to experience a decline in sales. The company has recently undergone a series of layoffs, following the departure of its creative director, Brendan Mullane, in 2016. Brioni’s revenue dropped by €190 million in 2015, a 9% decrease compared to the previous year. This decline led to a restructuring of the brand and the elimination of 60 jobs at its headquarters in Penne, Italy.
The parent company of Brioni, Kering, is currently working on further restructuring plans. It is considering laying off one-third of its workforce in an effort to combat the economic downturn. Gianluca Flore, the CEO of Brioni, believes that the prolonged period of surplus production is a contributing factor to the declining sales. As a result, he is contemplating cutting 400 jobs, approximately one-third of the current workforce.
The overproduction by Brioni’s workshops has created a vicious cycle of declining sales and dissatisfaction among employees. Price increases in Brioni’s products have further deterred consumers from purchasing their creations. This has prompted protests from the workers, with over 275 jobs lost in Penne and an additional 54 jobs cut at other sites.
The gravity of the situation has gained attention on a national level. Lawmaker Gianluca Vacca and regional councilor Domenico Pettinari are planning to raise the issue with the Ministry of Labor and Economy. They intend to seek funding from the European Social Fund to revive Brioni and renovate the neglected Penne workshop.
Overall, Brioni’s struggles highlight the challenges faced by luxury fashion brands in an increasingly competitive market. It is imperative for the company to adapt to changing consumer preferences and economic conditions to ensure its future success.
Useful Links:
1) Kering Pushes Forward with Brioni Strategy
2) Brioni Faces Protests in Italy over Layoffs
