On October 23, Kering-owned fashion house Alexander McQueen announced plans to cut up to 55 positions, or roughly 20 percent of its London headquarters staff, as part of a comprehensive strategic review aimed at stabilizing the business and restoring profitability.
Business Realignment Toward Profitability
According to WWD, McQueen has launched a three-year program aimed at returning the brand to sustainable profitability. The company said it is conducting a holistic review of its global operations, which includes restructuring its U.K. head office and simplifying operations across international markets.
McQueen stated that it will provide full support to employees affected by the changes and offer assistance where needed. These initiatives, the brand emphasized, are designed to strengthen its foundations and enable long-term growth.
This restructuring forms part of Kering’s broader effort to optimize its portfolio and improve profitability across all brands. McQueen plays a central role in this group-wide transformation, as Kering continues to refine its operational and strategic focus.
Kering’s Wider Transformation
Kering reported on October 22 that its third-quarter 2025 revenue declined 10 percent year-over-year to €3.4 billion.
In a statement accompanying the results, CEO Luca de Meo said: “Kering’s third-quarter performance, while representing a clear sequential improvement, remains far below that of the market. This reinforces my determination to work on all dimensions of the business to return our Houses and the Group to the prominence they deserve. We are working relentlessly on our turnaround, as shown by our recent decisions.”
Earlier this month, Kering also announced the sale of its beauty division to L’Oréal for €4 billion, which includes long-term fragrance and beauty licensing agreements as well as a joint venture in wellness.
During Kering’s general meeting, De Meo outlined his roadmap for recovery: “We will initially focus our efforts on the most effective levers to improve the quality of our capital allocation and generate a tangible operational rebound.”
McQueen’s Challenges and the Road Ahead
While smaller in scale compared to Gucci and Saint Laurent, McQueen has remained a key part of Kering’s portfolio for years. Under Sarah Burton, the brand earned critical acclaim for its poetic craftsmanship, though commercial growth proved difficult.
Today, Seán McGirr, who succeeded Burton as Creative Director, is leading a new chapter for the brand, seeking to redefine McQueen’s identity in an increasingly competitive luxury landscape. His appointment marks both a creative and strategic turning point for the house.
As Kering navigates a period of transformation, all eyes are now on McQueen—whether it can translate creative heritage into renewed commercial strength and carve out a sharper position within the global luxury market.
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