Chanel Cutting 200 Jobs


No word yet on whether the pink slips were quilted and monogrammed. (The workers can only hope they were on backorder.)

Telegraph: The company is taking the measure after a slump in demand, the French daily La Tribune said, citing unions.

Chanel’s move raises fears that the usually resilient luxury market is falling victim to the global credit crisis.

The job cuts follow last week’s announcement by Chanel that it had halted a mobile art exhibition featuring its iconic quilted handbag and chain in order to refocus on strategic investments in troubled economic times.

The handbag show, recently in New York’s Central Park and due to have travelled on to London, was housed in a white spaceship-like mobile art gallery designed by Iraqi-born British architect Zaha Hadid, and included works by 15 artists inspired by the purse created in 1955.

Luxury goods companies have started to feel the current economic crisis. Last week LVMH, the French group behind Vuitton and Givenchy, scrapped plans to open a 12-story Tokyo store after it failed to reach an agreement with a developer amid slumping demand for luxury goods.

Total sales of luxury goods in the US – defined as the highest priced tenth of jewelry, clothing and leather goods – fell 34.5pc, according to preliminary data from SpendingPulse, a division of MasterCard Advisors that tracks total sales paid for by credit card, checks and cash.

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