Fashion chain Esprit has announced a worldwide restructuring to keep the company competitive. Almost half of the staff will be terminated and many outlets will be closed around the globe.
All over the world
The Hong Kong headquarters will be reduced from three stories to just one, according to the South China Morning Post. Germany will be affected as well: the five head offices will be combined into one. Since more changes are demanded in the highly competitive fashion market, the chain will have to go even further to spare expenses: wherever the rental prices for retail buildings can not be reduced, the stores will close. The actual number of jobs that will be lost and stores that will be closed is not yet known.
On the other hand, the brand wants to expand its presence in China with 220 new stores by 2023, followed by 78 more in the rest of Asia. The past few years, the Esprit chain has already been cutting costs dramatically: the number of people employed by Esprit worldwide is 6,400 (full-time): compared to 7,300 last year.