LONDON — De Beers LV, the retail partnership between De Beers and LVMH Moët Hennessy Louis Vuitton, has cut 10 jobs in the supply chain division of its headquarters here.
Guy Leymarie, chief executive officer of De Beers LV, said the cuts had been planned and were due to changes in the company’s computer system and supply chain.
He said De Beers LV is now able to outsource certain controls it once oversaw in-house, and the jobs affected were in diamond and jewelry sourcing.
“As this partnership evolves, we’re adjusting our supply chain, sourcing and logistics with a view to becoming more efficient. There are no more job cuts planned,” Leymarie said. He added that one senior position had been affected.
Leymarie added that De Beers LV planned to create 40 positions in Japan, the U.K. and Dubai. Those jobs, he said, would be in the seven to eight stores the company plans to open in those areas this year.
The company plans three to four new stores in Japan, three in Dubai and a shop-in-shop at Harrods. By the end of the year, De Beers LV expects to have a total of 17 stores.
News of the cuts comes on the heels of comments by Gary Ralfe, managing director of De Beers Group. Earlier this month, during a conference call after the release of De Beers’ financial results for the 2005 fiscal year, Ralfe said the venture had “so far been disappointing,” but added that things appeared to be changing.
“We would like to think we are reaching a turning point,” Ralfe said of the joint venture, noting further expansion is planned this year. Revenues at De Beers LV rose 61 percent last year. Although De Beers did not release any sales figures for the venture, Leymarie confirmed that sales last year were $30 million.
Leymarie said he expects sales to grow at least 61 percent this year, if not slightly more.
“It’s true this project started slowly, but we’re on the right track. Going from a commodity business to a retail one takes a couple of years, and you have to be patient — that’s what I keep telling the shareholders,” said Leymarie.