CRV effect: Mulberry cuts over 450 employees, Marc Jacobs 60

CRV effect: Mulberry cuts over 450 employees, Marc Jacobs 60

We can call it the effect of Coronavirus on brand accounts. Mulberry cuts over 450 employees in the cost reduction plan. The British brand says that it will dismiss a quarter of its workforce: calculator in hand, it means about 474 people. “An incredibly difficult decision,” said CEO Thierry Andretta, who remains confident about the company’s long-term strategy. Meanwhile, Marc Jacobs is also preparing to reduce the team by about 60 people.

Mulberry cuts over 450 employees

With a press release, Mulberry takes stock situations regarding sales in times of pandemic: “The performance of the digital channel is good, but it cannot fully compensate for the decrease in demand due to the closure of the shops”. Speaking of the cuts, the brand explains that “it is starting a consultation process to reduce the number of employees by around 25% in the whole global business”. Consultations are being held between the company, unions and workers, before the layoffs are made official. Mulberry website lists 1,400 employees worldwide. For WWD, about 474 jobs are at risk.

Andretta explains

“We reacted quickly to manage the impact of Covid-19 – is Andretta’s comment -. We continue to implement a well-developed plan to manage capital, reduce costs and maintain a solid liquidity position. The start of the process was an incredibly difficult decision for us to make, but it is necessary for us to respond to these difficult market conditions. We remain confident in the strength of the brand Mulberry and in our long-term strategy”.

Marc Jacobs problems

Marc Jacobs, too, decided to cut about 60 employees. Among these also designer Olympia Le-Tan, who has been in charge of the style of the entry level line The Marc Jacobs. WWD reveals this, citing several sources and a spokesperson for the brand according to which the cuts represent less than 10% of the brand’s global workforce, including retail collaborators.

Image from mulberry.com

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