MUMBAI: Staff at former Spice Girls band member Victoria Beckham’s fashion business are furious after being told that a third of them are being axed.
About 60 workers are to be made redundant after new investors ordered a root-and-branch review of the company, which lost 8.5 million pounds last year, reports dailymail.co.uk.
Management consultants acting for backers Neo Investment Partners dismissed Victoria Beckham Ltd’s business model as unfeasible and recommended that the star slash her workforce.
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But there is growing anger that the 43-year-old was absent when the news was delivered – and over the amount of money earned by Victoria.
She was paid 700,000 pounds by the company last year, despite its disastrous financial performance.
Her label, VB Ltd, is based in Battersea, South London with shops in London and Hong Kong.
A source said: “She hasn’t handled this well, and the staff is raging. She is blaming the consultants, rather than thinking it is her fault. The fact is, she doesn’t know what she is doing and that’s why the backers have decided to act. The anger is mounting also because the staff knows how much she pays herself.”
A spokesman said: “The board has been focusing on returning the company to profitability. The structure is being reviewed to the right size, in line with its financial targets, in consultation with its staff.”
