As part of its ongoing restructuring efforts, Marc Jacobs International is said to have laid off the majority of its European staff, based in Paris. The exact number of job losses could not immediately be learned.
While a spokeswoman for parent company LVMH Moët Hennessy Louis Vuitton declined to comment specifically on layoffs, she said, “Since we began operating under a one-brand model, we have started to see the benefit of our focused strategy. We now need to drive further efficiency across our organization in order to operate in a fully integrated manner out of our global headquarters [New York]. The steps we are taking will position us to best leverage the power of the Marc Jacobs brand and position the company to enhance growth and improve performance.”
In 2015, Jacobs made the move to assimilate the contemporary Marc by Marc Jacobs label into the signature Marc Jacobs collection, as part of a plan to grow the company in anticipation of a possible initial public offering. Despite those moves, the business has continued to be a drag on LVMH’s performance.
Last month, LVMH’s chief financial officer Jean-Jacques Guiony said Jacobs’ performance was “probably one of the few negative performances we have in the group.”
“The company, in my view, is making a big improvement in its product. What they do, what they have been doing over the last season or two seasons is much better than before, particularly in the handbag business. Obviously, this takes a little bit of time to pay off, but we are extremely confident and in the meantime, we have to reduce the cost base,” he said.
While he said it will take time to fix the Jacobs business and called it promising but “quite complicated,” Guiony added, “We are great believers in the future of Marc Jacobs.” Still, he said, “We’re not positive about the outlook. I’m positive about the brand and the teams. That’s all. We are very positive we will make it.” How long it takes and how much it will cost is another matter, he added.
The repositioning of Jacobs’ business and the focus on one women’s brand have led to the demise of the men’s wear label. As reported, the company concluded its license agreement with Staff International SpA for its small men’s wear business following the fall 2017 line. The license covered men’s ready-to-wear, bags, accessories and footwear
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