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Versace Cutting More Than Hemlines

by Gabrielle Hennessey

In response to the still-lagging world economy and the drop in the luxury goods market, Versace has announced its plans to guillotine a quarter of its international work force in order to cut costs and pave the way for company restructuring.

Although companies backed by luxury mega-giant LVMH are doing relatively well thanks to the conglomerate’s deep pockets, Versace — though a luxury brand — is still struggling because it is privately-owned and thus can not depend on the stabilizing stock market to stay out of the red.

If all goes as planned, the Versace brand should be out of deep water and generating revenue by 2011.

Read the full story {NY Times}