Fears of layoffs at Gucci

In Italy, Gucci employees are expressing their dissatisfaction and going on strike in response to the announcement of the transfer of creative office employees from Rome to Milan. This decision, seen by much of the staff as an attempt by the parent company Kering to reduce the workforce, has raised concerns about a 'disguised collective layoff' within the flagship brand of the Pinault Group.

Protesters gathered outside the brand's Roman headquarters to voice their grievances. The announcement of the transfer of the design office to Milan was made last October, involving the relocation of 153 employees to the Lombard city, a decision that unions had already criticized, deeming the conditions for this transfer 'inadequate.'

This is the very first strike by the design office, the birthplace of all the luxury brand collections, supported by Italian workers' unions CGIL and UIL. They denounce unfair pressure from the parent company, Kering, on employees, especially those who, for family or logistical reasons, cannot move. Concerns are centered on the possible use of this relocation for layoffs and cost-cutting of personnel following Gucci's recent economic difficulties.

On its part, the brand intends to reassure its employees: in a statement, the management states that 'this transfer does not foresee any staff reductions (…) and will be implemented in full compliance with current regulations.' The company goes on to say that 'in order to facilitate the transfer of all the employees concerned to the maximum extent, the company has planned a series of measures, both economic and support, particularly more favorable than those provided for in the national collective agreement.'

In the context of disappointing half-yearly performances posted by Gucci this summer, with a 1% decline in sales for a total revenue of 5.12 billion euros, employees are closely monitoring the new strategies planned by the parent company for the coming months. Kering's goal is clearly to get its flagship back on track. The arrival of the new artistic director, Sabato de Sarno, replacing Alessandro Michele, is seen as a means to rejuvenate the brand. While 153 employees are supposed to be transferred to Milan by March, the fate of the remaining 66, who are expected to stay in Rome, 'is uncertain,' according to the unions. 'We demand the same conditions for everyone in the context of the transfer to Milan or a relocation of employees to other Kering companies in Rome or Florence,' summarized Chiara Giannotti.