Two-Phase Program of Workforce Reductions Announced at Luxottica Retail N.A.
November 6, 2009 7:30 AM

MASON, Ohio—Luxottica Retail North America announced yesterday a "voluntary separation incentive program" at the company's Cincinnati Service Center (CSC) headquarters here, offered to approximately 160 associates at all levels of the organization, VMail has learned.

The initial step will be followed by an "involuntary reduction in workforce program," starting in early 2010, which will affect additional associates at the Cincinnati Service Center. Both moves may affect anywhere between 10 percent to 30 percent of the workforce at Luxottica Retail N.A.'s offices here, a Luxottica spokesperson told VMail.

The spokesperson said that the first phase of the workforce program, meaning the number of associates who opt for voluntary separation, will influence the scope of the involuntary phase of the program. Luxottica Retail employs a total of 33,256 associates throughout North America, including 1,542 at the CSC in Mason, Ohio.

The spokesperson said, "Clearly this has been a most difficult decision, at the same time it is one that will help us in building an even more effective go-forward retail organization to serve the North American market. In 2010, we are preparing to drive growth in sales and profitability across all our retail brands in North America. Ultimately, we expect that our new structure will improve our ability to deliver these results within a still challenging environment.”

The spokesperson declined to provide further details at this time, but added, "To put this development in greater perspective, throughout the past nearly two years, Luxottica Group has moved to identify opportunities to streamline operations and drive efficiency across its entire global organization, including aggressively optimizing the cost structure. This included making its manufacturing structure in Italy even more flexible and effective, ongoing focus and increased control over working capital and, most recently, the reorganization of its distribution capabilities in North America. The program announced today is part of this overall plan to build a stronger and more effective overall business."