Giorgio Armani announces round of layoffs

In the category of things you don't see everyday, Giorgio Armani, one of the world's most recognizable names in luxury fashion, has announced that they will have a large round of layoffs.

The company, which is undergoing a new retail strategy, will be laying off 110 employees out of a total of 180 at their Giorgio Armani Operations plant in Settimo Torinese. The factory specializes in men's jackets and coats.

“For us, this decision is not acceptable and we will definitely work to limit the layoffs,” said Simona Lancellotti, the representative of the Filctem CGIL trade union, in a statement.

Earlier this year, Giorgio Armani announced they will be consolidating their umbrella of brands, and Armani Jeans and Armani Collezioni would cease operations, leaving Giorgio Armani, Emporio Armani and Armani Exchange as their three remaining brands. Their business overhaul will be effective as of the spring 2018 season.

Giorgio Armani laying off factory employees

Globally, Armani has 9,068 employees. Armani joins a growing list of luxury brands who have decided to streamline and consolidate their brands including Ralph Lauren, Paul Smith, Burberry and Marc Jacobs.

Despite the store closures, Giorgio Armani is still one of the most profitable luxury brands in the world.

In a January article on Reuters.com, Armani was quoted saying the brand had "a lot of cash," but didn't further elaborate. In 2015, the company posted revenues of 2.65 billion euros. Despite the 5 percent decline in revenues they saw in 2016, they are far from hurting, and consolidating will also help save the company money.

photo: via Bloomingdales.com