Gucci is facing growing discontent among its workforce in Italy as over 1,000 employees threaten to go on strike due to unpaid social bonuses.

According to union representatives, the company had previously assured its staff that the bonuses would be paid this year, in line with provisions from the last valid agreement currently in a state of ultraactividad—meaning it remains in force until a new one is signed.

The unpaid benefits affect both sales and logistics employees across Italy. Unions claim the bonuses were guaranteed by Gucci as part of their welfare package, but workers are still awaiting payment. “The workers are still waiting for the amount,” the unions said in a statement, adding that pressure actions may follow if the matter is not resolved.

Gucci has yet to issue a public statement on the matter.

This unrest comes at a time when Gucci is already struggling financially. The brand closed the first half of the year with a 26% drop in turnover, generating just over €3 billion in sales. This decline also impacted parent company Kering, which reported a 16% fall in revenue and a 39% drop in recurring operating profit for the same period.

Gucci’s sales were down 25% on a like-for-like basis, primarily due to a significant 42% decrease in its wholesale channel.

In response to the ongoing challenges, Gucci recently restructured its leadership. Maria Cristina Lomanto was appointed as the new President for Europe, the Middle East, and Africa (EMEA), succeeding Matteo Mascazzini. Additionally, Marcello Costa has been promoted to Merchandising Director, a pivotal role in the broader reorganization led by CEO Stefano Cantino, who assumed the position in January.