Pronovias Group Announces Strategic Plan to Cut Workforce by 25%
The Spanish bridalwear company, Pronovias Group, has unveiled a strategic plan aimed at boosting profitability and growth, which includes cutting approximately 25 percent of its workforce. This move is part of a broader transformation process initiated at the beginning of 2023.
The strategic plan will begin with an adjustment program centered around layoffs, specifically impacting employees at the company’s Barcelona headquarters. An employment regulation file (ERE), a Spanish process for collective dismissal, has already been presented to the staff, affecting up to 85 of the 332 employees at this location, via Fashion Network.
In a public statement, Pronovias Group emphasized that the layoffs are necessary to accelerate a new roadmap designed to ensure the company’s future. The goal is to build “an operating model appropriate to the characteristics of the current market” and enhance the company’s ability to explore growth opportunities in both new and mature strategic markets.
The new roadmap, which will span from 2025 to 2027, places significant emphasis on the US market. Pronovias aims to double its current turnover volume in the US, indicating a substantial push to expand its presence and sales in this key market. The company plans to detail further strategies later, including diversifying its brand portfolio and introducing a new distribution strategy to improve sales volumes.
This restructuring comes in response to a challenging fiscal year in 2023, where Pronovias experienced an 8.9 percent drop in sales and reported an EBITDA of 2.4 million euros. The group also faced net losses of 98.1 million euros, reflecting the ongoing difficulties in the global bridal market, which has struggled since the onset of the pandemic.
The adjustment plans and management restructuring are seen as critical steps to stabilize and revitalize the company’s financial health. By aligning its operations with current market demands and focusing on strategic growth areas, Pronovias aims to overcome recent setbacks and position itself for future success.
Eva Serrano, President of Pronovias Group, stated that the transformation process and the strategic adjustments are essential for the company’s long-term sustainability and growth. “Our aim is to create a more efficient operating model that can adapt to the evolving market and capitalize on growth opportunities, particularly in the US market where we see significant potential,” Serrano said.
The company acknowledges that these changes will be challenging for affected employees but stresses the importance of these measures to secure a more robust future for Pronovias. As the company navigates this period of transition, it remains committed to maintaining its leadership in the bridalwear market while adapting to new market conditions and consumer preferences.