Upmarket fashion label Jil Sander AG is axing 130 employees in Hamburg, Germany, as it shifts operations to Italy, financial newspaper Boersen-Zeitung said.

Jil Sander, which is shutting its last remaining German manufacturing base, is said to be in discussions with the works council to establish a redundancy scheme for the employees.

Jil Sander, which was bought by fashion house in Prada in 1999/2000, hopes its restructuring plan will help the business return to profit.