Job cuts at Brioni

New York - The company has announced that they will be laying off an undisclosed number of employees in their factories, particularly in the Abrezzo region of Italy.

According to a Brioni spokesman, the company is working on a strategy to find a balance between their workforce and production volume, which has significantly dropped over the past several year.

Market sources say that 400 jobs could be cut in the upcoming months.

“It’s about making the business sustainable,” the spokesman explained to WWD. “The imbalance between the headcount and number of pieces produced by the company was already evident in 2012, when Kering acquired it.”

In the wake of the 2008 recession which affected not only America, but also global markets, Brioni began investing more in their casual and sportswear offerings. It has been a rough several years for the company, who became famous for their finely tailored Italian suits.

According to a Milan-based analyst, Brioni's revenues dropped by 22.2 million dollars last year, to 211 million dollars. Most of the business lost was at the wholesale level. The firm was operating at a loss with negative earnings before interest and taxes.

Brioni's difficulties have been attributed to rising wholesale prices, the diminished spending power of Russian customers, and improper investments in human resources.

In fall 2014, Brioni tapped Gianluca Flora to be their new chief executive officer. Last month, they opted not to renew their collaboration with creative director Brendan Mullane. Flora is the successor to Francesco Pesci, who held the ceo position for around 15 years.

While there is growth in the men's fashion sector, and menswear is in the fashion spotlight more than ever, Brioni wasn't prepared for these market forces putting a dent in their business. Also, athleisure continues to make up a major part of the men's market, though the previous New York Fashion Week: Men's saw more vintage and old school inspired men's offerings being placed at the forefront of men's wear again. Restructuring will hopefully help Brioni overcome their current economic hurdle.