Well, it was inevitable.  While the economy has hit retail very hard, sales of luxury goods had the sharpest decline–down approx. 36% this season, and women’s clothing was next, down almost 25%.

Chanel plans to cut 200 jobs–representing 10 percent of its production workforce–effective Wednesday, including 16 staffers from their Rue Cambon boutique, the Guardian reported Monday.

They are also halting early their traveling art show designed by British architect Zaha Hadid.

They are far from the only luxury brand feeling the crunch, however, as LVMH, Prada and Bulgari are also showing signs of a disappointing year.