Bloomberg reports that Gianni Versace SpA is reducing its workforce by 26% - 350 of its 1,360 positions. The cuts by the Italian fashion house are part of its plans to return to profitability in 2011.
Versace expects a loss this year and has a "flat" outlook for 2010, it said in a statement today. The company will eliminate about 350 positions worldwide from a total of 1,360.
"Trading conditions in the wake of the global financial crisis have been severe," Chief Executive Officer Gian Giacomo Ferraris said in the statement. "No organization can allow a situation like this to continue."
Versace closed its stores in Japan earlier this month. Versace CEO Giancarlo Di Risi resigned in May and was replaced by Gian Giacomo Ferraris. There were rumors of friction between Giancarlo Di Risio and Donatella Versace that Versace dimissed.
Bloomberg 
