WASHINGTON (dpa-AFX) - Luxury fashion house Burberry announced plans to cut up to 1,700 jobs globally as part of a broader strategy to reduce costs and reposition the brand for sustainable growth. The cuts, which represent nearly 20 percent of its workforce, are aimed at delivering 100 million pounds in annual savings by 2027.
The move follows a 66 million pound full-year loss and reflects efforts by CEO Joshua Schulman, who joined in July 2024, to accelerate the company's turnaround. Most of the job reductions will affect corporate roles, particularly in the UK, where Burberry's head office is based.
Cuts will also impact staff at stores and the company's Castleford manufacturing site in West Yorkshire, where night shifts will be discontinued due to excess capacity.
'We're making these changes to protect the future of our UK manufacturing,' Schulman said, noting plans for significant investment to modernize the Castleford facility later this year. Additional savings will come from streamlining procurement, reducing real estate costs, and aligning store staffing with peak footfall.
Despite global sales declining 6 percent in the fourth quarter, the result was slightly better than expected, boosting investor confidence and sending Burberry shares up 17 percent. Full-year revenue dropped 12 percent, with Asia-Pacific and the Americas seeing the steepest declines amid slowing demand for luxury goods.
Analysts say Schulman's focus on Burberry's heritage staples-like trench coats and scarves marks a return to its core identity after past attempts to reposition the brand upmarket faltered.
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