United Kingdom: British fashion house Burberry has announced plans to cut approximately 1,700 jobs worldwide as part of a sweeping cost-saving initiative, following a reported $88.06 million (£66 million) loss for the last financial year.
The iconic brand, known for its signature camel, red, and black check pattern, said the job cuts would help it reach a target of $133.4 million (£100 million) in annualised savings by spring 2027. This includes a previously announced $53.3 million (£40 million) cost-saving programme in November.
The proposed redundancies, which amount to nearly 20 percent of Burberry’s global workforce, are expected to hit the UK hardest, particularly the company’s head office teams and its factory in Castleford, West Yorkshire, where its trench coats are made.
Burberry chief executive Joshua Schulman said the company was taking difficult but necessary decisions to address overcapacity and ensure long-term sustainability.
Schulman stated that, “For a long time we have had overcapacity at that facility, and that is simply not sustainable. But I want to be very clear that we are making this change to safeguard our UK manufacturing, and in fact we will be making a significant investment to renovate this factory in the second half.”
As part of the overhaul, night shifts at the Castleford site — where trench coats retail for between $1,334 (£1,000) and $13,342 (£10,000) will be scrapped. Rotas will also be reorganised, and store staffing will be aligned with peak trading hours, leading to further reductions.
The company said the cuts remain subject to consultation where applicable and that additional savings would come from improved efficiencies in procurement, real estate, and other operating expenses.
Burberry, which has been producing raincoats in Yorkshire since 1972, is returning its focus to its heritage product lines, particularly outerwear and scarves.
Schulman remarked that, “The continued resilience of our outerwear and scarf categories reaffirms my belief that we have the most opportunity where we have the most authenticity.”
Despite the economic headwinds, he expressed confidence in the brand’s future, stating that, “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.”
Russ Mould, investment director at AJ Bell, described the plans as radical steps in its continuing recovery effort, noting that Schulman was returning Burberry to its strengths after previous attempts to compete with higher-end rivals failed to deliver results. Schulman, who joined Burberry in July last year, previously led Coach and Jimmy Choo.
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