Luxury fashion giant Chanel is cutting 70 jobs in the US, representing about 2.5 percent of its workforce in the region, according to a report initially made by online publication Puck News and later confirmed by Bloomberg.

The decision to reduce its workforce is intended to curb expenses and help the company “better adapt to current economic challenges,” according to a statement from Chanel obtained by Bloomberg.

In addition to fashion, Chanel also sells perfume, cosmetics, watches and jewellery. The fashion house's turnover for 2023 will amount to 19.7 billion euros, an increase of 16 percent compared to a year earlier. More than half of the turnover in 2023 will come from the Asia-Pacific region. Europe follows in second place with a quarter of the turnover. The US market accounted for approximately 20 percent of Chanel's total turnover.

Despite the increase in sales, Frederic Grangie, head of Chanel's watch and jewellery division, said 2025 and 2026 will be difficult years for the luxury industry. In an interview with Swiss newspaper Le Temps in October 2024, he said he expects demand for luxury products to decline due to market saturation, which he called "luxury fatigue."

FashionUnited has contacted Chanel for more information.

This article originally appeared on FashionUnited.NL. It was translated to English using AI and edited by Rachel Douglass.