Versace’s Layoffs Reach 26 Percent DESIGNER, MAIN, RETAIL 10.30.09Written By Ben

In this hurting economy, Gian Giacomo, Versace’s new CEO has taken bold measures to stop the label from losing money by restructuring the house. It appears that Giacomo may be getting along much better with Donatella Versace compared to the feudal relationship she had with Versace’s former CEO, Giancarlo Di Risio.

Unfortunately, restructuring the label consists of cutting 350 positions, which is a total of 26 percent of the house’s workforce. The Financial Times considered the cuts as “the most dramatic by any leading designer during the current downturn.”

In this year alone, Versace is believed to lose $44 million. If all goes well, Versace may break even in 2010 and see profits as soon as 2011.