Alexander McQueen’s Restructuring: A Turning Point for the Iconic British House

Luxury fashion is undergoing one of its most significant internal shakeups in years, and at its centre is Alexander McQueen, the London-born brand famed for its dramatic tailoring, boundary-pushing design, and revered creative legacy. But now, the house faces a major strategic reset with far-reaching implications for its workforce, operations, and future direction.

A Third of Italian Roles at Risk: What’s Happening?

According to union officials and company statements, Alexander McQueen plans to cut approximately one-third of its workforce in Italy as part of a restructuring designed to steer the brand back to profitability after years of declining revenues. Over the last three years, McQueen’s revenue reportedly fell by roughly 60 %, creating what management described as an “emergency scenario” of plunging sales volumes and production output.

Although precise numbers haven’t been released by the brand itself, unions estimate that of the roughly 180 employees across McQueen’s three Italian units, around 60 jobs are at-risk roles primarily tied to design, production, and artisanal support in key regions near Florence and Milan.

The company has initiated a formal consultation process with trade unions in Italy, an important legal and procedural step in European labor frameworks, while union leaders are scheduled to meet with Kering CEO Luca de Meo on February 5.

Why Now? The Financial and Strategic Context

The cuts come amid broader restructuring efforts across Kering, the French luxury group that owns McQueen, along with Gucci, Bottega Veneta, Saint Laurent, and Balenciaga. Under the leadership of Luca de Meo (appointed CEO in 2025), Kering has been navigating a challenging luxury market marked by slowing consumer demand, higher inflation, and ongoing weakness in key regions like China.

Recent earnings data underscores the pressures: while some Kering divisions—such as Kering Eyewear and its beauty arm have shown modest growth, overall revenues were reported down nearly 10 % in the third quarter of 2025, with Gucci and other core brands also underperforming.

Within this broader climate, McQueen has lagged its peers, and costs tied to complex production and bespoke craftmanship have weighed on operational margins. In response, management has been trimming roles in major offices. As early as October 2025, the London headquarters announced cuts of around 20 % of its staff as part of a strategic review.

The Human and Industrial Impact

Labour unions in Italy representing workers from manufacturing to design support warn that job cuts at McQueen could ripple outward, affecting not only internal roles but also the brand’s Italian supply chain, which supports numerous ateliers and specialised subcontractors.

Unions such as Filctem CGIL, Femca CISL and Uiltec have called for heightened transparency and insist that Kering activate “synergies within the group” to limit social fallout, including potential disruption to partner workshops that depend on McQueen’s orders.

Industry observers note that these layoffs are happening against the backdrop of a luxury sector increasingly focused on cost discipline, even at storied houses known for artisanal craft, reflecting a broader shift toward profitability over unrestrained creativity. For many workers deeply invested in the McQueen ethos, the cuts represent more than numbers: they mark a seismic shift in how heritage fashion brands manage growth, costs, and cultural relevance.

Kering’s “Strategic Transformation” Vision

In its official communication to Reuters, McQueen framed the restructuring as part of a three-year plan to restore sustainable profitability, a goal that Kering’s leadership has reinforced. The company has publicly stated it “fully supports McQueen in its ongoing strategic transformation” and believes these measures will ultimately strengthen the brand’s global position.

De Meo’s strategy across the Group includes rationalising operations, reducing excess costs, closing underperforming stores, and optimising brand portfolios to enhance long-term resilience. Analysts say this may involve shifting emphasis away from over-dependence on megabrands like Gucci and fostering growth in other creative houses, even as financial pressures persist.

What This Means for the Future of Luxury Fashion

These developments at Alexander McQueen are emblematic of a larger recalibration in the global luxury market. Traditional fashion houses are balancing heritage and innovation against an economic landscape that demands efficiency, adaptability, and strategic focus. Whether these cuts translate to renewed vitality or represent deeper challenges ahead remains to be seen, but one thing is clear: even the most revered brands are not immune from the pressures reshaping luxury today.

For fashion insiders, creatives, and industry watchers alike, McQueen’s restructuring may signal not just a strategic pivot, but a culture shift, one where fiscal prudence and artistic vision must find a new equilibrium.