Luxury fashion brand Alexander McQueen is the latest house to undergo restructuring within Kering Group, with the company confirming the loss of 55 jobs—around 20% of its London headquarters staff. The decision comes as part of a strategic overhaul initiated by Kering’s new chief executive, Luca de Meo, amid a broader effort to stabilize the group’s performance following several challenging quarters.

Falling Sales Trigger Strategic Overhaul

According to reports first published by Women’s Wear Daily (WWD), the layoffs are part of a comprehensive review of Kering’s portfolio after a 10% decline in group sales during the third quarter of 2025. The decline affected most of Kering’s top-performing luxury labels, including Gucci, Balenciaga, and Saint Laurent.

While Kering did not disclose detailed figures for McQueen, the company noted that its revenue decline had slowed, particularly due to a rise in women’s ready-to-wear sales. However, the continued downturn in the luxury sector has prompted the group to take decisive action.

“As part of a comprehensive strategic review of our global operations, we are restructuring our UK head office and reducing complexity across our international markets,” the brand said in a statement to WWD.

Image Credit: McQueen is known for its tailoring and subversive aesthetics – McQueen

New Leadership at Kering Seeks Stability

Luca de Meo, who joined Kering from Renault earlier this year, has been tasked with revitalizing the group’s performance and managing its debt reduction strategy. De Meo’s leadership marks a shift toward a leaner, more performance-driven structure, with each brand undergoing evaluation to ensure long-term viability.

Kering’s chief operating officer, Jean-Marc Duplaix, reinforced this approach during the company’s third-quarter results presentation, stating:

“When it comes to the portfolio, we will review, of course, in a very open manner, the relevance of the assets we have in the portfolio.”

Positive Market Response Despite Layoffs

Despite the announcement of job cuts and declining revenue, investor confidence in Kering appeared to rebound. The company’s third-quarter results exceeded analyst expectations, driving its shares up by 11% on the Paris stock exchange.

Analyst Adam Cochrane of Deutsche Bank remarked in a research note that Kering’s performance “came in even better than expected, and expectations were already high,” signaling cautious optimism for the group’s turnaround strategy.

Image Credit: Alexander McQueen

Kering’s Wider Business Moves

Kering also recently announced the sale of its beauty division to L’Oréal for €4.6 billion ($5.3 billion), a move seen as part of its plan to streamline operations and refocus on its core luxury fashion brands.

The sale, combined with restructuring across its houses, suggests Kering is realigning resources to boost profitability and strengthen brand identity amid growing competition from conglomerates like LVMH and Richemont.

A Defining Moment for Alexander McQueen

Known for its bold tailoring, avant-garde aesthetics, and craftsmanship rooted in British heritage, Alexander McQueen remains one of Kering’s most distinctive brands. However, as the company faces shifting consumer demand and market uncertainty, the restructuring represents both a challenge and an opportunity to redefine its business strategy.

The job cuts at Alexander McQueen underline a broader recalibration within the luxury fashion industry, as conglomerates like Kering adapt to changing market realities. With new leadership, strategic asset reviews, and a focus on long-term stability, the group is signaling its commitment to revitalizing its portfolio while navigating a volatile global market.