Luxury fashion house Chanel is cutting 70 jobs in the US, representing around 2.5 percent of its workforce in the region. This was first reported by online publication Puck News and later confirmed by Bloomberg.
In a statement obtained by Bloomberg, Chanel explains that this measure aims to reduce costs and better adapt the company to current economic challenges.
In addition to fashion, Chanel also sells perfumes, cosmetics, watches and jewelry. The fashion house’s sales are expected to be 19.7 billion euros in 2023, an increase of 16 percent compared to the previous year. More than half of 2023 sales will come from the Asia-Pacific region. Europe follows in second place with a quarter of sales, while the US market accounts for about 20 percent of Chanel’s total sales.
Despite the increased sales, Frédéric Grangie, head of Chanel’s watch and jewelry division, warned that 2025 and 2026 could be difficult for the luxury industry. In an interview with the Swiss newspaper Le Temps in October 2024, he expressed the expectation that demand for luxury goods would decline due to market saturation – a phenomenon he described as “luxury fatigue”.
FashionUnited has contacted Chanel for comment.
This article previously appeared on Fashionunited.com and was created using digital tools translated.
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