Fashion

Marc Jacobs Reduces European Staff; The Company Will Operate In A “Fully Integrated Manner” Out Of New York

By Donovan | May 4, 2017 0 Comments

Marc Jacobs Fall 2017 Ready-To-Wear.

In the latest news surrounding American fashion designer Marc Jacobs, the iconic New Yorker is said to reduced his European staff, according to sources. The luxury house will operate in a “fully integrated manner” out of New York.

As part of its ongoing restructuring efforts, Marc Jacobs International is said to have laid off the majority of its European staff, based in Paris. DM Fashion Book could not determine the exact number of job losses at the time of press.

According to WWD, A spokeswoman for parent company LVMH Moët Hennessy Louis Vuitton declined to comment specifically on layoffs, she said, “Since we began operating under a one-brand model, we have started to see the benefit of our focused strategy. We now need to drive further efficiency across our organization in order to operate in a fully integrated manner out of our global headquarters [New York]. The steps we are taking will position us to best leverage the power of the Marc Jacobs brand and position the company to enhance growth and improve performance.”

Back in February, Marc Jacobs presented its Fall 2017 Ready-To-Wear runway show at Park Avenue Armory during New York Fashion Week (see it here). In June of 2015, we reported that Marc Jacobs has officially closed his Collection store in Paris‘ Palais Royal, after nine years (see it here), In March of 2015, Marc Jacobs‘ Marc by Marc Jacobs label discontinued, and that collection were folded into the primary Marc Jacobs line (read it here) and industry veteran Iana dos Reis Nunes has been tapped as Marc Jacobs‘ new Global Head Of Communications (see it here).

Last month, LVMH’s chief financial officer Jean-Jacques Guiony said Jacobs’ performance was “probably one of the few negative performances we have in the group.”

“The company, in my view, is making a big improvement in its product. What they do, what they have been doing over the last season or two seasons is much better than before, particularly in the handbag business. Obviously, this takes a little bit of time to pay off, but we are extremely confident and in the meantime, we have to reduce the cost base,” he said.

While he said it will take time to fix the Jacobs business and called it promising but “quite complicated,” Guiony added, “We are great believers in the future of Marc Jacobs.” Still, he said, “We’re not positive about the outlook. I’m positive about the brand and the teams. That’s all. We are very positive we will make it.”

The repositioning of Jacobs’ business and the focus on one women’s brand have led to the demise of the men’s wear label. As reported, the company concluded its license agreement with Staff International SpA for its small men’s wear business following the fall 2017 line. The license covered men’s ready-to-wear, bags, accessories and footwear.