Bernard Arnault, CEO of LVMH, coined the phrase “promoted outwards” for layoffs during an investor call. The 75-year-old billionaire made the comment while discussing META’s decision to lay off low-performing employees.
LVMH’s Bernard Arnault calling layoffs “promoted outwards”
Arnault claimed those losing their jobs are being “promoted” to better positions elsewhere. This Orwellian term was used to soften the announcement that Tiffany’s Jewelers will downsize. Arnault did not specify the number of layoffs.
Inspired by META’s recent staff cuts, Arnault emphasized the need for high performance. META CEO Mark Zuckerberg also announced plans to move out low-performers faster.
However, social media users aren’t taking too kindly to his remarks. They state that this means his former workers would be promoted to a customer rather than still working for him. An X user who works in retail corporate says this has been their thoughts for years.
Luxury brands laying off their staff due to lack of sales
Chanel Inc. is cutting 70 US roles due to economic challenges, representing 2.5% of its workforce. This follows previous spending limits to adapt to current economic conditions. Chanel caters to wealthy customers but faces a post-pandemic downturn.
Despite the cuts, the US remains vital to Chanel’s strategy. The Americas represented 20% of Chanel’s 2023 sales.
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