Despite Donatella Versace hosting the Whitney Museum's Studio Party in NYC last week, things are looking grim for the luxury company.

Gianni Versace SpA announced today that it will eliminate 350 jobs worldwide in an effort to cut costs, reports the Wall Street Journal.

The fashion house is expecting to report a $44.4 million loss this year and the layoffs will be made by the middle of 2010.

Versace Chief Executive Gian Giacomo Ferraris (who recently replaced Giancarlo Di Risio) added via the busines site, "No organization can allow a situation like this to continue, especially considering the flat outlook for 2010."

The layoff announcement comes on the heels of Versace's recent closure of its last store in Japan, one of fashion's biggest markets.

The Italian luxury house isn't the only one taking a recession hit, see Prada's creative cost-cutting.