**Burberry Set to Cut Up to 1,700 Jobs in Major Cost‑Saving Drive**
Burberry, the iconic British fashion house, has revealed plans to slash up to 1,700 jobs globally as part of an ambitious move to reduce costs and restore profitability. The luxury brand announced that this sweeping measure is a central part of its revised cost-cutting strategy, which now aims to achieve £100 million in annual savings by the 2027 financial year.
The restructuring is expected to unfold over a two-year period and comes amid a period of sustained financial difficulty for the company. Burberry confirmed it would be focusing on what it described as “people-related costs”—a move likely to result in significant workforce reductions across its international operations.
The company’s latest financial results paint a challenging picture for the distinguished fashion brand. For the year ending 29 March, Burberry reported a pre-tax loss of £3 million, a dramatic fall from the £418 million profit recorded just one year ago. The results underscore the difficulties facing the luxury retail sector, particularly in certain key markets.
Sales figures further illustrate the scope of the challenges. Comparable store sales in Burberry’s retail locations fell by 12 percent year-on-year. Particularly sharp declines were noted in Asia, traditionally a powerhouse for luxury brands, where sales fell by 16 percent. This downturn in Asian markets has had a major impact on the company’s global sales performance.
In light of these results, Burberry’s chief executive, Joshua Schulman, addressed investors with a message that combined caution and optimism. Acknowledging the “difficult macroeconomic backdrop” facing the company, Mr Schulman nonetheless emphasised his belief in the long-term potential of the brand. “While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry’s best days are ahead and that we will deliver sustainable profitable growth over time,” he stated.
Industry observers note that Burberry’s cost-cutting plans are not unique in the luxury sector, which has seen several major brands implement similar measures in response to global economic headwinds and shifting consumer demand. Nevertheless, the scale of Burberry’s job cuts stands out as significant, especially given the company’s historic reputation and role as a cornerstone of British fashion.
Although the company has not yet detailed which regions or departments will be most affected by the job losses, the move is expected to span both head office and retail roles worldwide. Stakeholders, including staff and investors, are now waiting for further announcements as Burberry begins to implement its savings strategy.
This announcement represents a decisive moment for Burberry as it attempts to steer its way through a turbulent period for the luxury market. While the job cuts will inevitably cause concern among employees and could impact brand morale, the company’s leadership insists that the measures are necessary to ensure the business can return to a position of growth and profitability in the future.
As global economic uncertainty continues to affect the retail landscape, Burberry’s dramatic restructuring underscores the challenges facing even the most established names in luxury fashion. The road ahead may be uncertain, but all eyes now turn to how the brand will evolve in its quest for renewed success.