Multiple major industries, including fashion, are now facing a major wave of layoffs after a surge in hiring in 2021-2022. I am watching the leadership movement of Don’t forget to subscribe to the Glossy Podcast for interviews with fashion industry leaders and week-in-review episodes, and the Glossy Beauty Podcast for interviews from the beauty industry. –Danny Parisi, Senior Fashion Reporter
Layoffs shake multiple industries, including fashion
More layoffs rippled across the fashion industry last week, from Saks.com to Gymshark. Gymshark was one of the darlings of the activewear boom, hailed for its rapid rise to unicorn status. The British company is now laying off 65 of her people in the US as part of a restructuring of its US operations.
Outside fashion, layoffs are rampant across the tech, financial and media industries, with Alphabet, Microsoft, Box Media, The Washington Post and Goldman Sachs all affected. This is the latest drop in the labor market roller coaster in the pandemic era. Millions of jobs were lost in 2020, but jobs picked up again in 2021 and he jobs surge in early 2022. Now the pendulum is swinging again and millions of Americans are out of work. Even if no other fashion company experiences layoffs, the depressing force of unemployment in the consumer market will certainly affect industry forecasts this year.
luxury is strong
Despite layoff uncertainty, LVMH owner Bernard Arnault remains confident about the mega-company’s outlook for 2023.% year-on-year.
Luxury goods tend to be disconnected from the current economic climate. Most of those who lose their jobs are not consumers of the super expensive products offered by LVMH brands. The company’s management has tried to remind shareholders of this fact in their earnings announcements. Jean-Jacques Guiony, LVMH CFO, said: “Despite the war in Ukraine and challenges in China, last year’s strong performance demonstrated the resilience and persistence of luxury consumers and the strength of our brands. I have.”
gucci pulls rabbit felt products
Gucci went a little too far in celebrating the Lunar Year of the Rabbit, which begins on January 22nd, by selling products made from 100% rabbit felt. Activists said this contradicted Gucci’s commitment to being 100% fur-free. According to the brand, felt is not considered fur because it does not come with animal skins.
Pacsun Shuffles Executives
Pacsun’s longtime brand president, Bree Olson, has moved to the co-CEO role alongside Mike Lerich. Relich’s current co-CEO, Alfred Chang, who has held the role for 17 years, is leaving to become his CEO at Pacsun’s recurring partner Fear of God.
Neale Attenborough, managing director of Pacsun owner Golden Gate Capital, said Olson has “contributed” to Pacsun’s success over the last few years.
“Brie’s strong relationships with designers and other Pacsun partners, combined with her keen sense of style, will continue to be a strong asset to the company as she steps into her new leadership role with Mike,” he said. said in a statement.
