PARIS — Chanel will lay off 200 employees here on Dec. 31, according to local press reports.

This story first appeared in the December 29, 2008 issue of WWD.  Subscribe Today.

The workers said to be affected have either short-term contracts or are engaged on an interim basis. Workers in Chanel’s Verneuil-en-Halatte, France, location reportedly will be the most affected, while 16 employees in the company’s historic rue Cambon store are also said to be losing their jobs.

A company spokeswoman had no comment Sunday.

The Chanel news comes swiftly after reports circulated here that cataloguer 3 Suisses is to announce early next year approximately 400 job cuts. And in late October, mail-order giant La Redoute revealed plans to shed about 13 percent of its workforce, or some 600 positions.

Earlier this month, Chanel said it would pull the plug on its costly Mobile Art exhibition that was slated to travel to major cities worldwide in a Space Age prefab structure designed by architect Zaha Hadid. At the time, a Chanel spokeswoman said, “Considering the current economic crisis, we decided it was best to stop the project. We will be concentrating on strategic growth investments.”