MILAN — Corneliani is cutting 130 jobs in its Mantua, Italy, headquarters.
The decision is part of a three-year strategic plan, developed by the men’s wear company to face its financial difficulties, which are also linked to an overall crisis of the luxury formal men’s fashion segment.
“The three-year plan will include a deep revision of the organization model, which today more than ever is fundamental to readapt the structure to face years of contractions […],” said Corneliani in a statement. “The process of modernization of the company will enable us to significantly reduce the operational costs, putting at disposal more resources to express the potentials of the Corneliani brand at our best.”
The plan will also include investments to boost its retail presence in key markets, a further development of e-commerce, a redefinition of the collections and of the productive footprint.
“We think that Corneliani doesn’t need job cuts but investments,” said Michele Orenzi, provincial secretary of the Filctem Cgil Mantova trade union, which organized two days of strikes on Nov. 7 and 8. “In its statement, the company says the goal of the strategic plan is to make Mantua a point of reference for excellent craftsmanship. Mantua is already that and the Corneliani company offers the best in terms of men’s wear manufacturing. The problem sits in the lack of marketing and placement activities, which require investments that the property is not doing. They cannot just cut jobs, the employees are united and ready to fight. We will continue the dialogue with the company only when we have access to the executives of the investment fund.”
Corneliani is controlled by Investcorp, a Bahrain-based investment group, which bought a majority stake in the company in 2016 in a deal valued at $100 million.
This is not the first sign of trouble for Corneliani, which in May signed an agreement with the Italian unions to put its 525 Manutua-based employees in “Cassa Integrazione,” in this case, a 19-day temporary work suspension via special public funds.
The company has been helmed since last year by Luigi Ferrando, who succeeded Paolo Roviera in the role of chief executive officer. The brand is available in more than 750 stores, including department and specialty stores, as well as flagships.