VICENZA, Italy (BRAIN) — Campagnolo laid off 40% of its workforce after it reported losses of 24 million euros ($27.8 million) over the past three years.
According to sister publication Velo, a Campagnolo statement cited by Italian publication Il Gazzettino outlined the financial troubles that led to the termination of 120 of the component brand's 300 employees. It said there would otherwise be "dramatic consequences for the company and for the city of Vicenza."
Campagnolo, like Shimano and others, has faced headwinds since the end of the COVID-related industry boom. Those include new U.S. tariffs on European imports, with Italy saddled with a 15% "reciprocal" tariff in addition to pre-existing duties on bike parts, which are up to 11% depending on the component. The new 15% tariff on EU imports is lower than the tariffs on parts from Taiwan and other Asian manufacturing nations, however.
In June, Cherry Bank, an Italian bank, provided 8.5 million euros in financing for Campagnolo to use in the development and launch of its 13-speed road groups.
