Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Giorgio Armani Operations, a subsidiary of Italian luxury fashion house Giorgio Armani, is to lay off 110 employees (out of a total of 184) at its plant in Settimo Torinese (close to Turin), a manufacturing facility specialized in outerwear.The cuts are due to shifting parts of the production to Bulgaria and Turkey, while only a small portion of production, along with research and development, remains in Italy.
The site has been facing a period of crisis (see also ArmaniIT-2009), which compelled the company to introduce so called 'solidarity contracts' (contratti di solidarieta') with reduced working hours and salary cuts in the last two years. Reportedly, the announced job cuts are part of the company's new brand strategy. The reorganisation is expected to be effective as of Spring 2018.
Dismissals would affect mainly female textile workers. According to media sources, the staff is mostly aged around 50, which hampers the use of early retirement schemes as well as outplacement of redundant workers.
Update, 03/08/2017: The management and unions reached an agreement on a maximum number of 98 exits to be implemented according to a ‘social plan’. The plan entails voluntary incentivised dismissals, early retirements, trainings aimed at employing redundant workers in other branches of the company or within the group as well as outplacement measures.
The company will also activate temporary layoff schemes for a period of 12 months.
Eurofound (2017), Giorgio Armani Operations, Offshoring/Delocalisation in Italy, factsheet number 91520, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/91520.