Editor’s note: Updated with a statement from Luxottica at 10:20 a.m.
Luxottica cut a significant number of jobs at Oakley Thursday as the company moves to integrate Oakley more closely into its corporate structure.
I am told that the company eliminated more than 100 jobs, including many Oakley veterans. Some put the number much higher. A significant number of employees also had their jobs changed, from what I understand.
A Luxottica spokeswoman declined to say how many jobs were eliminated.
“Last month, we announced the further integration of Oakley into Luxottica, allowing the brand to better leverage on Luxottica’s strengths in everything from commercial expertise to supply chain and logistics,” a company spokeswoman said in a statement. “We see huge potential for Oakley in the future. This move, in essence a relaunch of the brand with greater resources behind it, will accelerate growth and position the brand for opportunities ahead.
“As a result of the integration, some areas of the Oakley business will see an impact, primarily small pockets of the business where there is duplication of resources or projects.
“Preserving Oakley’s unique DNA, which has made it an iconic leader in sports, will be a priority. Consumer-facing functions like product, manufacturing and marketing will continue to shape the brand from Foothill Ranch, CA.”
Oakley is the No. 2 proprietary brand in the Luxottica portfolio and has been one of the top performers in the industry in terms of revenue growth and profitability.
Luxottica acquired Oakley in 2007, and until now, the company has been run as a separate global entity.
But Luxottica founder Leonardo del Vecchio is now taking a more active role in Luxottica, which led to the departure of longtime Luxottica CEO Andrea Guerra.
New Co-CEOs Massimo Vian and Adil Mehboob-Khan took over leadership of Milan-based Luxottica late last year and early this year, and have said that integrating Oakley more closely into the Luxottica structure is a key strategic priority.
Luxottica estimates the integration synergies will be worth €100 million over time between top-line growth and cost savings.
One of the biggest changes Luxottica is making is to move Oakley’s optical division to New York, I am told.
But cuts were made throughout the organization including in North American marketing.
Morale is said to be grim at the tight-knit company, which has a family-like company culture. After watching their friends lose their jobs, some employees remaining now have additional duties added to their job descriptions.
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