Why Yoox Net-a-Porter Group will lay off 211 employees in Italy Another wake-up call in the world of e-commerce

Yoox Net-a-Porter Group, once a flagship of luxury e-commerce, is undergoing a crisis so profound that it seems to mark a definitive turning point in the decline of what was considered one of Italy’s leading digital bets in the sector. Now integrated into the LuxExperience group, the Monaco-based holding that also manages MyTheresa, the company announced in recent hours a mass layoff of 20% of its Italian workforce, with 211 redundancies out of a total of 1091 employees in the country. Of these, approximately 160 are concentrated in the Bologna area, while the remaining 46 involve the Milan office, with the list of affected individuals expected in the coming days. Globally, the reorganization plan extends to 700 positions, affecting the United Kingdom, the United States, and other countries to varying degrees. The official reason is to optimize efficiency and centralize certain functions, some of which will be transferred to Munich, which may now assume a more central role.

Why is Yoox Net-a-Porter Group in crisis?

The drastic reduction in Yoox Net-a-Porter Group’s workforce comes at a time of economic difficulties and a crisis affecting the entire sector. The group recorded a revenue drop of 191 million in the last fiscal year and accumulated losses such that, at the close of 2024, the accounts showed a deficit of 1.8 billion, with little likelihood of recovery in the current year, pushing the total losses over the past two years beyond two billion euros. An unfortunate epilogue for a company that was a pioneer in the Italian luxury world, the first startup capable of expanding to a stock market listing and attracting the most prestigious luxury brands. The situation worsened following the complete acquisition of Yoox Net-a-Porter by LuxExperience, finalized last April and announced the previous year. Previously, the company was controlled by Richemont, and in 2023, it was on the verge of selling a majority stake to Farfetch which then plummeted and was rescued by the Korean company Coupang.

What happens now?

The decision, unsurprisingly, caught employees off guard, leading to protests from numerous trade unions that will formally challenge the decision before institutions. LuxExperience, listed on the New York Stock Exchange, stated in a note that the layoffs are part of a strategy to bring the company back to growth after years of decline and that Italy will remain a long-term operational hub, particularly for the off-price segment. The group aims for a gross merchandise value of 4 billion euros by 2029, a very ambitious figure given the poor state of the luxury and e-commerce sectors worldwide, but one that will require a plan of drastic cuts to achieve. The situation is serious but, as already noted, it unfolds in a vaguely apocalyptic scenario for luxury e-commerce – which Farfetch’s collapse had already foreshadowed.

What’s happening in the world of luxury e-commerce?

Yoox Net-a-Porter Group is not the only one struggling in the luxury and fashion e-commerce landscape, where the end of the pandemic boom has triggered a chain of financial crises that has overwhelmed major global platforms, leading to bankruptcies, restructurings, and salvage acquisitions. Among the most recent victims is SSENSE, which just a week ago filed for bankruptcy, crushed by a debt burden exacerbated by new U.S. tariffs. In Italy, meanwhile, Luisaviaroma, with a turnover of 310 million euros in 2024, initiated a negotiated crisis settlement procedure in August to manage a debt of 30 million, aiming for a deep reorganization of its operating model, including investments in the marketplace and directly managed brands, under the supervision of an expert appointed by the Chamber of Commerce for an initial six-month period, potentially extendable.

This decline echoes the fate of Farfetch, acquired at the end of 2023 by the South Korean giant Coupang to avoid collapse, and Matchesfashion, which went into liquidation just months after being purchased by Frasers Group. The only ones bucking the trend are Zalando and Mytheresa, both German: the former closed the second quarter of 2025 with a gross merchandise volume up 5% to 4.1 billion, revenues rising to 2.8 billion and an operating profit of 186 million; it also finalized the integration of About You in July for 1.1 billion, with optimistic projections forecasting profits between 550 and 600 million for this year; the latter, with 555 million in cash and no debt, saw its stock soar by 150% post-acquisition, though it remains wary of the impact of U.S. tariffs that could affect 20% of its U.S. revenues.