McQueen launches strategic review as Kering ramps up turnaround efforts

Alexander McQueen has launched a strategic review of its operations, a move that could see around 55 roles cut from its London headquarters, roughly 20% of its head office workforce, as the brand looks to return to sustainable profitability.

The Kering-owned house confirmed it has entered a consultation process with affected staff as part of a wider programme to reset the business and streamline operations globally.

McQueen said the initiative aims to “return the business to sustainable profitability over the next three years", according to WWD. "We are restructuring our UK head office and reducing complexity across our international markets. We are committed to supporting our employees throughout this transition and are confident that these actions will strengthen our position and enable long-term growth," it added.

The restructuring at McQueen comes amid sweeping changes across parent group Kering, which is under new leadership following Luca de Meo’s appointment as CEO in September. De Meo has promised a full turnaround strategy by spring 2026, but has already begun implementing cost-cutting and portfolio reviews across the business.

The announcement follows a challenging financial year for the group. Earlier this week, the luxury giant reported a 10% drop in third-quarter revenue, dragged down by continued weakness at flagship brand Gucci. This came just days after Kering announced it was entering a long-term strategic partnership in luxury beauty and wellness with L’Oréal, including the creation of a joint venture in the wellness space.

Under the agreement - valued at €4 billion and expected to close in the first half of 2026 - L’Oréal will acquire Kering Beauté, including the House of Creed, a heritage fragrance brand renowned for its craftsmanship.

De Meo has said his immediate priorities are to reduce debt, cut costs and rationalise underperforming brands, suggesting more restructuring could be ahead.

"Kering’s third-quarter performance, while representing a clear sequential improvement, remains far below that of the market," said De Meo. "This reinforces my determination to work on all dimensions of the business to return our Houses and the Group to the prominence they deserve."

McQueen, one of Kering’s smaller labels, has faced profitability challenges despite strong brand recognition and a loyal following. The house has been under creative director Seán McGirr since late 2023, following Sarah Burton’s departure after more than two decades at the brand.

McQueen’s struggles highlight a broader recalibration within Kering’s portfolio. The group has already sold off smaller brands, including Christopher Kane, Stella McCartney, and Tomas Maier, as it refocuses on its larger fashion powerhouses.