RESHORING CASE

Giorgio Armani

Company details
Code: 
Armani
Company name: 
Giorgio Armani
Company country: 
Italy
Group home country: 
Italy
Number of employees: 
6500
Sector: 
C - Manufacturing
Sector detail: 
C14 - Manufacture of wearing apparel
Reshoring details
Reshoring announcement date: 
26/02/2016
Starting implementation date: 
March, 2016
Reshored to: 
Italy
Location of affected unit(s): 
Milano
Location code: 
ITC45
Reshored business function: 
Financial
Partial or Total reshoring: 
Partial
Reshoring governance mode: 
In house (in own facilities)
Estimated job gains: 
60
Reasons for reshoring: 
Changes in taxation
Labour costs
Case narrative: 

Armani is shutting down the Giorgio Armani Swiss Branch, after 20 years. The company intends to relocate most of its employees to its Milan site; however this is a conditional offer and employees are required to accept a reduced salary (from €4,000 to €1,500). The Swiss site in Mendrisio is going to keep 10 employees, while 40 are going to be laid off, according to the latest news. However, Armani's medium term plan is to fully close the Mendrisio site.

Armani opened an administrative center in Mendriso (Switzerland) twenty years ago. Despite higher salaries than in the home country, Mendrisio has attracted fashion companies due to fiscal advantages. Recent changes in the local taxation has greatly reduced the attractiveness of the region, and Armani is not the first company closing or reducing its subsidiaries. 

Sources: 

La Repubblica, 26/02/2016

Sources link: 

http://www.repubblica.it/economia/finanza/2016/02/26/news/armani_svizzer...

Offshoring details
Offshoring date: 
1996
Offshoring location: 
Switzerland
Offshored business function: 
Financial
Offshoring governance mode: 
In house (in own facilities)
Offshoring entry mode: 
Wholly owned
Number of jobs lost: 
100
Reason for offshoring: 
Taxation
Host country geographical area: 
Western Europe