Luxury fashion brand Burberry plans to cut approximately 1,700 jobs as part of a cost-saving initiative aimed at reducing expenses by 2027. The British designer, known for its iconic camel, red, and black check pattern, announced these measures following a reported £66 million loss in the last financial year. The job reductions will decrease Burberry’s global workforce by nearly 20%, including potential layoffs at its Castleford factory in West Yorkshire. CEO Joshua Schulman stated that most job cuts will occur within head office teams worldwide, with a significant focus on the UK, where the majority of its employees are based. Schulman also confirmed plans to reorganize staff schedules and eliminate night shifts at the Castleford factory, which produces trench coats priced from £1,000 to £10,000 each. Despite these changes, Schulman emphasized that the company will invest in renovating the factory to ensure the sustainability of its UK manufacturing operations. The savings will also involve aligning store schedules with peak traffic periods and reducing operating expenses through increased procurement and real estate efficiency. These measures are subject to consultation where applicable. Burberry was founded in 1856 and has been producing its famous raincoats in Yorkshire since 1972. The company previously announced a £40 million cost-saving program in November, bringing the total planned annualized savings to £100 million by Spring 2027. Schulman expressed optimism about Burberry’s future, highlighting the resilience of its outerwear and scarf categories. Russ Mould, investment director at AJ Bell, described Burberry’s actions as radical steps in its recovery effort, noting Schulman’s strategy of cutting costs and refocusing on classic outerwear products like trench coats and scarves.
— new from BBC
