Grace Pickford reports on Victoria Beckham’s decision to axe employees amidst the pandemic due to the business struggling.
After reversing a decision to furlough 30 staff back in April when the pandemic began to grasp the UK in its clutches, Victoria Beckham has now laid off 20 staff due to the impacts of Covid-19.
The original decision to furlough 30 staff was met by great criticism as it required 80% of the staff wages to be paid by the government’s scheme, and taxpayer’s money. This was swiftly reverted after meeting uproar from the public.
However, Beckham has now fired 20 staff due to her fashion label’s sales plummeting during the coronavirus pandemic.
“Like so many businesses, a challenging retail landscape coupled with the unforeseen effects of the coronavirus pandemic, has adversely impacted the Victoria Beckham business. As a response, we have built a new strategic vision to streamline and future-proof the brand and, very sadly, have to make a number of redundancies to deliver this,” said a spokesperson for Beckham.
Victoria and her husband, David Beckham, reportedly bought a $33 million Miami penthouse back in April of this year, and their combined wealth has left many awestruck at the lack of success for her business and her need to fire staff members during the unstable times.
Beckham’s fashion line has not made a profit since it launched in 2008 despite garments prices starting in the hundreds and making their way into the thousands, and the label having support from A-listers such as Megan Markle and Gwenyth Paltrow.
The Chairman of the fashion label stated that the business’ profits flatlined after a period of growth in 2019 when Victoria Beckham Ltd grew by 20%.
Chairman Ralph Toledano stated: “Our goal is to reach profitability as soon as possible.”
“I firmly believe that our destiny is in our hands. We have a great talent in Victoria and, if you take that asset with a dream team, we can do it.”