When Gucci found it difficult to achieve the sufficient amount of profit, they made some changes in their strategy to restructure the business. One of the main priorities while restructuring the firm was the cost cutting for the new hiring. Several people were fired at the corporate level for that purpose and the employees were entirely astonished in that situation.
Gucci restructured by naming William Flanz and Maurizio Gucci as CEO and COO, naming Tom Ford as creative director, and meanwhile cutting cost by firing a certain amount of employers.
Gucci’s many operating companies started to weld into a coherent whole. The seven Gucci operating companies – Guccio Gucci, Gucci France, Gucci Ltd., Gucci S.A., Gucci America, Gucci Japan, and Gucci Co. Ltd – were combined for the first time. Gucci also began to offer stock options to employees, which was a practice that differentiated the company from its competitors.
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