Burberry has announced plans to cut approximately 1,700 jobs worldwide by 2027 as part of a broader effort to reduce costs by £100 million annually. The British label, renowned for its iconic trench coats and distinctive check pattern, announced a sharp financial downturn, including a £66 million loss in the past financial year.
Most job cuts are expected to affect head office staff, particularly in the UK, where most of its workforce is based. The company also plans to reorganize store staffing schedules to match peak shopping times, increasing job reductions.
A notable change will occur at Burberry’s Castleford factory in West Yorkshire, where the night shift will be eliminated, potentially impacting around 150 workers. Despite these cuts, CEO Joshua Schulman emphasized that Burberry remains committed to its UK manufacturing with significant investments in factory renovations planned for later this year.
The job reductions follow a previous £40 million cost-saving initiative announced in November, bringing the total targeted savings to £100 million by Spring 2027. Additional efficiencies will come from procurement, real estate, and other operational expenses.
Burberry has faced ongoing challenges, including a declining global luxury market and struggles with its recent brand revamp. The company has seen a 117% drop in pre-tax profits, falling from a £383 million profit to a £66 million loss.
Overall revenue declined by 15% yearly, excluding currency effects. Industry experts note that the fashion house has been hit harder than some competitors in the luxury sector. However, Schulman remains optimistic, stating that categories like outerwear and scarves show resilience, reinforcing his belief in the company’s core strength.
