The Italian fashion powerhouse Benetton has undertaken a sweeping corporate reorganization aimed at optimizing its relaunch and achieving profitability by 2026 or 2027. This reorganization marks the end of the first phase of the plan led by new Claudio Sforza, CEO who took over in June 2024.
According to internal documents cited by Italian financial daily MF-Milano Finanza, Benetton established seven new companies - or ‘newcos’ - all based at its Castrette corporate hub. Following a complex double demerger and spin-off operation, the group's assets and corporate functions have been divided among these entities, which will become operational in January.
The core company, Benetton Group, is now the coordinating holding company, retaining final authority over financial, legal, and auditing decisions. It directly controls five new operational units: Green 347, Benetton Operations, Benetton Distribution, Benetton Logistics, and Benetton E-commerce.
Under the group has jettisoned its traditional vertically integrated business model through significant operational changes including closing of production sites in Tunisia, Serbia and Croatia, reduction in global employee count from 1,100 in mid-2024 to approximately 700 by the end of 2025, aided by voluntary separation incentives and shutting of approximately 500 unprofitable stores worldwide, bringing the group’s total retail network to nearly 3,000 locations.
The reorganization assigns clear functions to the new leadership: Benetton Operations (led by Vincenzo Meles) handles design and marketing; Benetton Distribution (Nicola Capone) oversees retail and franchising; and Benetton E-commerce manages online sales.
The goal of this reorganization is aggressive loss reduction; after cutting losses by more than 57 per cent to €100 million in 2024, Benetton aims to return to profit within the next two years - a pivotal moment as the brand prepares to celebrate its 60th anniversary in 2025.
