Chanel Reiterates Its Long-term Commitment to China Amid Layoff Speculation
- Chanel denies rumors of layoffs in its China head office, stating its commitment to long-term growth in the Chinese market.
LONDON— Chanel reiterated its long-term commitment to China on Wednesday as speculation about layoffs in its China head office in Shanghai started to circulate in local media.
An apparently internal memo leaked to local media outlined plans to cut Chanel 's China head office head count by almost 20 percent by the end of 2025.
More from WWD
In a statement shared exclusively with WWD, Chanel said the material that local media has been citing "constitutes inaccurate information."
"Chanel is maintaining its plans for people development, also upgrading and expanding its retail network in China to continue offering its customers an exceptional and exclusive experience. China is a key market for Chanel, and we have full confidence in its long-term potential," the brand added in the statement.
The apparent memo claimed the brand aims to "reassess its current organization based on reprioritization per business needs. Pivot resources, organization design, requires collective agility and energy to focus on highest impact priorities."
The apparent memo also showed a budget headcount projection per quarter, with the total number of employees decreasing from 462 in 2024 to 373 toward the end of 2025.
Earlier this year, Chanel said it would cut 2.5 percent of its workforce in the U.S., or 70 roles, in 2025, as the French luxury brand warned of a tougher economic environment.
In 2023, Chanel's revenues totaled $19.7 billion, up 16 percent at comparable rates, with double-digit growth across all categories.
Chanel will report its 2024 annual results in May.
Best of WWD
Sign up for WWD's Newsletter . For the latest news, follow us on Facebook , Twitter , and Instagram .
