Victoria Beckham cuts staff numbers
Victoria Beckham’s fashion business is cutting up to 60 staff posts after a strategic review on behalf of its new investors showed its current operating model to be staff-heavy.
That's according to a number of reports in UK newspapers. They said that the loss-making company, which was in the red to the tune of £8.5 million last year, has been analysed by management consultants working for Beckham's new backers Neo Investment Partners.
If true, it's perhaps unsurprising. Beckham launched her label a decade ago and it has since grown organically without the involvement of outside investors or any of fashion’s big names at executive level.
However, the cash infusion from Neo and the recent arrival of Ralph Toledano as chairman were always likely to lead to the company being put on a more sustainable business footing.
While many of the press reports understandably tended to focus on the more negative side of the new strategy and the salacious element of Beckham’s own salary, it seems that the consultants said the operational structure had been “unfeasible” in its existing form.
The 60 job losses reportedly represent around a third of the total roles at the company.
The Daily Mail reported that Beckham, who earns £0.7 million from the business, has upset some staff because she didn't deliver the redundancy news in person.
The company, VB Ltd, is based in Battersea, South London and has shops in London's West End and in Hong Kong.
A Beckham spokesman told the newspaper: "The board has been focusing on returning the company to profitability. The structure is being reviewed to the right size, in line with its financial targets, in consultation with its staff."
Copyright © 2023 FashionNetwork.com All rights reserved.