Kering Ushers in a New Era: Strategic Overhaul and Layoffs at Alexander McQueen

Kering takes the first step in its restructuring plan. Alexander McQueen, one of the smaller brands in its portfolio, has announced the launch of a strategic review that includes the elimination of 55 positions at its London headquarters, about one-third of the office staff. The aim is to return the company to profitability within three years.

The UK company has already begun the process of labor consultations in the UK, a step prior to implementing the layoffs, as part of a broader program to streamline operations and reduce costs. “We are committed to supporting our employees during this transition,“ the company said in a statement accessed by WWD.

The news comes a day after Kering presented its third-quarter results and confirmed a 10% drop in sales, to €3.415 billion, in a period marked by the strategic transition led by Luca de Meo.

Although the company has improved compared to the 15% decline in the previous quarter, the evolution confirms that the group continues to lag behind the market in a context of global slowdown in luxury.

Kering begins reorganization of its structure by optimizing resources at Alexander McQueen

Gucci, its flagship brand, fell again by 18% to €1.343 billion. Yves Saint Laurent fell 7% and Bottega Veneta held its own with a slight decline of 1%. The “other brands” segment, which includes McQueen along with Balenciaga, Brioni and jewelry brands, generated €652 million, down 5%.

McQueen is therefore one of the smallest brands in the group and has not reached the level of profitability of Kering’s growth drivers for years. Even during the tenure of Sarah Burton, natural heir of the late designer founder of the firm at the helm of creative direction, the brand failed to transform itself into a global luxury player. Since the end of 2023, the baton has been passed to Seán McGirr, with the challenge of redefining its identity under financial pressure.

Unlike other labels in the past, such as Stella McCartney or Christopher Kane, Kering has decided to keep McQueen in its portfolio, betting on its internal restructuring. “We have a clear strategy for all brands and we are executing it brand by brand, but there are no divestment plans,“ Jean-Marc Duplaix, deputy chief operating and finance officer, said in July.

The adjustments at McQueen are the first visible move in a broader plan that De Meo will detail in spring 2026, but which is already in the implementation phase. In September, the executive warned that the holding company would have to “reduce debt, cut costs and, where necessary, rationalize, reorganize and reposition some brands.“