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Chanel Cuts 200 Jobs

by Terri Potratz | December 29, 2008 at 10:13 am

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Chanel announced they will cut 200 jobs, or 10% of its work force, on New Year's Eve day this year. The layoffs will affect all staff on fixed and temporary term contracts.

Many predicted that luxury brands would remain immune in the face of a recession, but it appears that this market is quite vulnerable as retailers and high fashion brands struggle to cope with tightened purse strings and falling sales figures.

Many leading labels are offering discounts and stalling new store openings while they attempt to renegotiate development and marketing plans and project realistic sales targets for the coming year.

The job losses, described by some commentators as the label's worst crisis since founder Coco Chanel fired all her staff at the outbreak of war in 1939, represent almost 10% of the company's production workforce. The redundancies come after a difficult year for the fashion, perfume, cosmetics and accessories businesses where growth has almost ground to a halt.

The announcement of Chanel's job cuts came shortly after the French label announced that their Mobile Art Exhibit, a travelling show that featured artwork inspired by Chanel's quilted handbags, would not be continuing its world tour. The pavilion was designed by architect Zaha Hadid and was due to visit London, Moscow and Paris after the New York installation, but the project was halted so Chanel could "refocus" their strategic investments.

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rpshen

at 10:18 on December 29th, 2008

I too thought luxury brands such as Chanel would be immune to the recession but I guess ppl are less inclined to purchase period. To be honest, I think this is a good opportunity to shed the extra staffing at these high-end boutiques. Rarely do you see ppl walk into these stores.

???? (not verified)

at 15:31 on February 5th, 2009

rpshen!!!! REALLY!?! you think its a good thing to shed extra staff at these high-end boutiques??? how insensitive of you... you are talking about peoples livelihood... what does YOU having the opportunity to see people walk into those stores have anything to do with a reason for employees to get fired... how selfish of you to find the way to include yourself with a pointless comment. it would be the equivalent of saying the company you work for should lay you off because your comment makes nosense...