Kering CEO Luca de Meo to Meet Italian Unions Over Alexander McQueen Restructuring

Core Viewpoint - Kering's Alexander McQueen is undergoing a restructuring plan to achieve break-even, which includes significant workforce reductions and cost-cutting measures [1][3]. Group 1: Restructuring Plans - The restructuring plan forecasts redundancies equal to one third of the total workforce [1]. - The company aims to reorganize production processes to reduce costs [1]. - McQueen is considering starting a formal consultation process with unions regarding potential layoffs [3]. Group 2: Financial Situation - The financial scenario for McQueen from 2022 to 2025 is described as extremely critical, leading to an emergency situation [3]. - The sector is experiencing a crisis, resulting in a 60% decrease in revenue, a drastic drop in sales volumes, and a misalignment between operating costs and revenues [3]. Group 3: Union Concerns - Unions express strong concerns about the future of production at McQueen's plants in Scandicci, Novara, and Parabiago, which may lead to job losses [2]. - There is a call for transparency regarding the industrial plans and relaunch strategies to mitigate the social impact of the restructuring [3]. - Unions hope for clarity about the industrial plans and trust in maintaining correct industrial relations [3]. Group 4: Long-term Strategy - The restructuring is part of a group-wide effort to return the business to sustainable profitability over the next three years [4]. - The company is committed to engaging in productive discussions with employees and supporting them through the transition process [4].