The luxury e-commerce landscape is navigating dramatic shifts as major players enact significant operational changes.
LuxExperience B.V., the digital luxury conglomerate formed following Mytheresa‘s acquisition of YOOX, Net-A-Porter (YNAP), has announced plans to eliminate approximately 700 jobs across its newly acquired operations as part of a comprehensive transformation strategy. The restructuring affects employees in Italy, the United Kingdom, the United States, and other jurisdictions where YNAP operates its luxury and off-price segments.
Strategic Consolidation Drives Workforce Reduction
The layoffs mark a major consolidation as LuxExperience integrates YNAP’s operations with Mytheresa. The ongoing restructuring is expected to result in a partial reduction of the workforce across several sites, potentially impacting around 700 employees in Italy, the United Kingdom, the United States, and other jurisdictions as business operations are streamlined. Alongside workforce adjustments, the group is implementing shared tech platforms, migrating some brand operations, and realigning logistics to boost efficiency and support a multi-year transformation plan aimed at restoring profitability and market leadership in global luxury e-commerce.
This move aims to simplify business functions and utilize shared infrastructure for both the luxury segment (NET-A-PORTER, MR PORTER) and the off-price outlets (YOOX, THE OUTNET). The strategy is intended to drive “significant efficiency and structural improvements,” as LuxExperience revealed.
Geographic Commitments Maintained Despite Cuts
Despite the reductions, LuxExperience pointed out that it will keep key operational hubs. Italy will continue as a central location for the group and remain the headquarters for YOOX, while NET-A-PORTER, MR PORTER, and THE OUTNET will retain their bases in the United Kingdom.
LuxExperience affirmed its ongoing commitment to maintaining Italy and the United Kingdom as headquarters for its acquired brands, continuing operations in these regions as the business integration and transformation process unfolds. The geographic breakdown of the layoffs demonstrates this continued investment, with around 160 roles affected in Bologna and another 46 in Milan.
Financial Pressures Drive Transformation
The reduction comes in response to serious financial difficulties. YNAP’s luxury segment saw an 11% drop in revenue in 2024 to €1.2 billion, with projections of a further 11% decrease for the current year. Off-price divisions are similarly challenged, with YOOX and THE OUTNET closing 2024 down 19% to €957 million, and expectations of a 14% decline in 2025.
YNAP accumulated notable losses, ending 2024 with a deficit of €1.8 billion and surpassing €2 billion in total losses over two years. A transformation plan has been put in place to restore long-term profitability and position the group for growth by 2030, reflecting LuxExperience’s multi-year commitment to strategic restructuring and market leadership.
Support for Affected Employees
LuxExperience recognized the contributions and the impact on its workforce. LuxExperience stated, “We deeply appreciate the contributions of all potentially affected employees and recognise their role in building the legacy of these iconic brands,” said. The company has committed to responsible and constructive solutions, ensuring the transition is handled with fairness, care, respect, and a strong sense of responsibility as workforce changes and integration progress.
Stakeholders and employee representatives are being informed in line with regulations, and the company notes its aim to minimize social impact.
Industry Context and Future Outlook
This restructuring reveals the broader challenges for luxury e-commerce. The announcement arrives as the sector faces wider financial pressures globally. The group’s transformation plan is expected to span several years, focusing on operational efficiency, streamlined logistics, and digital innovation. Continued investments in technology and customer experience enhancements remain central to LuxExperience’s growth strategy, supporting all brand platforms.
