MILAN — Additional restructuring is afoot at Italian eyewear manufacturer Safilo.
As part of the strategy set in motion by chief executive officer Angelo Trocchia, the company confirmed it has entered a layoff procedure for some 80 employees at its headquarters located in Padova, in the Veneto region. The mobility procedure is expected to close by Sept. 23.
The workforce rationalization has already impacted the company’s plants in Longarone and Santa Maria di Sala last August, when 80 workers were let go. Safilo Group SpA employs 966 workers across the three sites.
As reported, in the first six months of the year Safilo Group SpA posted a profit of 8.7 million euros compared with a loss of 4.3 million euros in the same period last year. The figure is net of the new IFRS 16 accounting rule.
In the six months ended June 30, revenues at the Italian eyewear group rose 6.5 percent to 495.9 million euros, compared with 465.7 million euros in the same period last year. Trocchia has said Safilo is on track with its 2020 plan to return to top-line growth.
The company designs and manufactures eyewear collections for a range of labels including Dior, Fendi, Givenchy, Max Mara, Marc Jacobs, Tommy Hilfiger and Kate Spade, among others, as well as for its proprietary brands Carrera, Safilo and Polaroid. Safilo has been reorganizing its license portfolio and its organization, also impacted by the end of the Gucci license at the end of December 2016.
As reported in July, the eyewear specialist revealed that after 23 years the licensing agreement for the Dior and Dior Men collections of sunglasses and optical frames will end at its expiry date of Dec. 31, 2020, in view of the vertical integration of Dior’s parent group LVMH Moët Hennessy Louis Vuitton and the establishment of a joint venture with Marcolin, called Thélios, inked in 2017.
During the more than two decades of the license, Safilo sold more than 30 million pieces of Dior eyewear and, in the fiscal year 2018, the Dior license accounted for roughly 13 percent of the Italian eyewear company’s total sales.
Earlier this month, Safilo has renewed its global eyewear licensing agreement with Hugo Boss for the exclusive design, development, production and distribution of ophthalmic and sunglass collections of the German brand’s Boss and Hugo labels.