Brioni and unions reach agreement to cut 140 jobs
Italian luxury menswear house of Brioni has reached an agreement with unions to cut 140 jobs out of 1.150. Initially, Brioni intended to cut 400 jobs.
“These are structural job cuts, necessary to make the company, currently plagued by overproduction, more efficient,” stated a Brioni spokesperson in charge of the matter. To encourage voluntary resignations, the company offered a severance indemnity of €32,000. The dismissal procedure will start at the end of April.
In order to reach an agreement, all of the company’s employees had to accept to sacrifice part of their salary. Working hours will be reduced, down from the current 40 hours per week to 32, while salaries will be cut by 20%.
In addition, certain operations which were until now outsourced will be once again executed internally. “There will be more work, but each employee will be working fewer hours,” said the spokesperson.
Thanks to this reorganisation, Brioni is hoping for renewed growth. In the last four years, output had in fact fallen by more than 30%, from a production of 45,000 units to 30,000 in 2016, since many of the suits were not sold. Once free from the stocks still available in the stores, the label is planning to increase production as of 2018, rising from 30,000 to 35,000 units.
The fashion label wishes to focus more on the luxury clientèle’s preferences, relaunching formal wear through a bespoke service, which will become pre-eminent over ready-to-wear. It will be up to the new Creative Director, Justin O’Shea, to pick up the gauntlet.