Roberto Cavalli comes to an agreement with unions to axe 50 employees

Italian fashion house Roberto Cavalli SpA has come to an agreement with unions as the Ministry of Labour and Social Policy over plans to cut up to 200 roles.

The luxury fashion label previously announced its new strategy following the exit of its former creative director Peter Dundas, which included plans to shut design and corporate offices in Milan and axe 30 percent of its 672 workforce in order to help the fashion house return to profitability by 2018. However, employees began protesting against the new plans, announced by Roberto Cavalli's CEO Gian Giacomo Ferraris in October, as unions called on Robert Cavalli to reconsider its reorganization plans.

Now, following weeks of discussion, Roberto Cavalli has agreed to cut a total of 89 roles, with 50 of the jobs cut located in Florence. This is less than the 77 redundancies in Florence previously predicted, according to local media reports. From the 50 positions axed, 15 are said to be "voluntary" exits and 25 are linked ot the shutting of Roberto Cavalli's printing plant. Roberto Cavalli confirmed the impending closure of its offices in Milan, as it aims to relocated all its operations to its head quarters in Osmannoro, in Florence, where the fashion house is based.

Gian Giacomo Ferraris revealed in the statement that he was "very pleased" with the outcome of the agreement, which is "preparatory to the relaunch of the company", he added. "I am satisfied, in particular, for the sense of responsibility that the different parties have shown and that bodes well for the future. As I stated at the time of the reorganization, I am convinced that Cavalli has in it what is necessary to start again."

The Filctem Cgil union in Florence added that it was glad it had managed to significantly reduce the number of redundancies made and offered workers a voluntary exit incentive as well. The union asked that Roberto Cavalli continue to work hard to ensure its reorganization plan is a success and to ensure it works with as many local factories, printers and manufacturers as possible and to "allow the largest possible number of reemployment among the Cavalli layoffs."

The move comes as Roberto Cavalli continues to struggle. The Italian fashion house reported a 14.2 decline in revenues in 2015, down to 179,9 million euros.

Photo: Roberto Cavalli, website