By  on November 17, 2013

Giorgio Armani SpA is reorganizing part of its company, Giorgio Armani Operations, in Italy’s area between Reggio Emilia and Modena, almost two hours away from Milan — a move that is causing some friction, negotiations with local unions and possibly government-funded wage subsidy, according to Il Sole 24 Ore.

The daily said Friday that Armani plans to close its manufacturing plant in San Martino in Rio, moving 134 employees, with the exception of around 20 units, to a site in Baggiovara, about 12 miles away. In this town, Armani is whittling down its commercial division, cutting employees from 50 to 30, as several have been relocated to Milan, where, the paper says, all commercial activities are being concentrated.

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