Benetton Employees Strike in Italy Over Restructuring and 'Solidarity Contracts'

Employees Stage Two-Hour Strike at Benetton Plant

Employees of Italian fashion giant Benetton held a two-hour strike on Monday, October 27, 2025, at the company's Castrette di Villorba plant in Italy. The industrial action, which took place from 10 AM to 12 PM, was organized by leading trade unions CGIL, CISL, and UIL. The strike was called in response to the company's decision to implement 90% 'solidarity contracts' for 80 employees without prior consultation, a move communicated via email. Unions viewed this as a breach of previous agreements made during discussions on the company's reorganization plan.

Extensive Restructuring Plan Underway

The strike unfolds against the backdrop of a comprehensive restructuring plan initiated by Benetton Group CEO Claudio Sforza. The plan, which began in 2024, aims to steer the company back to profitability by 2026, following substantial losses, including 230 million euros in 2023. Key components of this strategic overhaul include:

• The closure of approximately 500 stores, primarily within Italy.
• A reduction in production cycles, halving them from 12 to 6 months.
• The closure of manufacturing facilities in Croatia, with some operations shifting to Tunisia and Serbia.
• The relocation of the company's headquarters from Villa Minelli to Castrette di Villorba.
• A division of the company's assets and business functions into seven new entities.

Workforce Adjustments and Union Demands

As part of the restructuring, Benetton has introduced a voluntary departure scheme offering allowances of up to 50,000 euros, and a working-time reduction program affecting nearly a thousand employees. In July 2024, an agreement was reached for 'structural unemployment' for 908 employees, limiting it to a maximum of two days per employee until February 28, 2025, with a guarantee of no layoffs.

However, the recent unilateral application of 90% solidarity contracts for 80 workers sparked the October 27 strike. Unions are demanding a renegotiation of these terms, advocating for a more equitable distribution of the burden and immediate dialogue with the company's management.

Financial Outlook and Future Goals

Benetton's restructuring efforts are designed to significantly improve its financial standing. The company aims to reduce its losses by more than half in 2024, targeting approximately 110 million euros, and achieve a break-even point by 2026. Despite a challenging market, the company reported revenues of 917 million euros in 2024, down from over a billion euros in 2023.