LONDON — McQueen is launching a strategic review that could lead to the loss of 55 jobs, or around one-third of the head office staff in London, the company told WWD.
The Kering-owned brand said it’s taking a holistic look at strategy and operations and aiming to reset the business and restore it to profitability. McQueen confirmed it has already entered into a consultation process, a precursor to layoffs in the U.K., with the members of staff affected.
In a statement to WWD, McQueen said it has “launched a program aimed at returning the business to sustainable profitability over the next three years. As part of a comprehensive strategic review of our global operations, we are restructuring our U.K. head office and reducing complexity across our international markets.”
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McQueen added: “We are committed to supporting our employees throughout this transition, offering assistance where needed. We are confident that these actions will strengthen our position and enable long-term growth.”
McQueen isn’t the only Kering brand that’s under the microscope as the French group looks to stem sales declines at a difficult time for luxury.
Last month, the group’s new chief executive officer Luca de Meo told Kering shareholders he would present a detailed strategy in spring, 2026 but would start implementing his turnaround plan for the group before the end of this year.
The changes have already begun. Earlier this week Kering and L’Oréal revealed a 4 billion euro deal that involved forming a long-term strategic partnership in beauty and wellness that will see the latter acquire the House of Creed from Kering, and an exclusive license for the creation, development and distribution of fragrance and beauty products for Gucci.
Dragged down by steep declines at its star brand Gucci and a bulging debt load, Kering has also been closing stores, selling real estate and reducing headcount after a dismal start to the year that saw group net profit plummet 46 percent in the first half.
On Wednesday, the ailing French luxury group reported a 10 percent drop in revenues, although the company’s star brand Gucci performed better than analysts had expected.
In September, at a combined general meeting at Kering headquarters, de Meo suggested there was more pain on the cards, but added that he was confident the group would rebound despite a global slowdown in luxury spending.
“We will initially focus our efforts on the most effective levers to improve the quality of our capital allocation and generate a tangible operational rebound,” he said in a speech.
“We will have to continue to reduce our debt, cut our costs and, where necessary, rationalize, reorganize and reposition some of our brands,” de Meo added.
McQueen is wholly owned by Kering and one of the smallest brands in the portfolio. It has struggled for years, even during the long tenure of its star designer Sarah Burton, who is now at the creative helm of Givenchy.
It remains an open question whether a succession of managers ever managed to transform McQueen, now designed by Seán McGirr, from a designer label into a luxury brand.
The group has also been focusing on its mega brands, such as Gucci, and long ago disposed of the smaller ones. It sold Christopher Kane and Stella McCartney back to their respective designers, and ended its partnership with Tomas Maier for his signature brand shortly after the designer gave up the creative reins at Bottega Veneta.
Kering has soldiered on with McQueen, and confirmed in July — before de Meo’s arrival — that it had no plans to sell underperforming brands. The group said it is focused instead on redressing ailing labels like McQueen, which has been undergoing a restructuring.
“We have a clear strategy for all the brands, and we are working to execute properly the strategy brand by brand,” said Jean-Marc Duplaix, deputy CEO in charge of operations and finance. “But so far, when it comes to the portfolio of brands, we have no plan of disposal.”
