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Chanel to Cut 200 Jobs

Written by Allan Barger

As if we didn't already have enough signs that 2009 is going to be a lean year, The Guardian is reporting that they will be cutting 200 jobs, most of which will fall within their production workforce. Chanel is blaming a slow down in their luxury sales which is in line with predictions from JP Morgan citing that the luxury market will see sales fall by 4% in 2009.

"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."

While not surprising this is a sad precursor to what will be a year where many fashion houses will likely be slashing jobs to protect their bottom lines.

Written: 1st January 2009 at 13.19