High-end fashion house Versace is slashing 350 jobs worldwide after it forecast a 30% drop in revenue for 2009.

The restructure reflects a troubled global luxury goods industry that Bain & Co. reportedly expects to contract 8% to $US228.25 billion in 2009.

Associated Press reported Gian Giacomo Ferraris, who took over the family fashion house in July, said it hoped an aggressive approach would create immediate change.

Production would be streamlined, the store network would be reviewed and capital investments and overhead reduced, he told media.

"We will invest in design, product development and brand management," Mr Ferraris said. "All the other areas, infrastructure, support, like bookkeeping, administration, controlling, and any double infrastructure, will be concentrated and rationalised."

The company aims to have an operating profit by the end of 2010 and a bottom line profit by 2011.

Staff would be cut from 1,310 now to 960 by the middle of next year, he said.

While new stores were planned in Las Vegas, New Dehli, Dubai and the Gold Coast, unprofitable stores would close, including its three stores in Japan.

The luxury goods industry has dived in Japan, but Mr Ferraris told AP it would reposition there in the future.