British luxury fashion brand Burberry has announced plans to cut 1,700 jobs globally as part of a major cost-cutting initiative aimed at stabilizing its business.
The decision comes amid declining sales, economic uncertainty, and a broader slowdown in the luxury market.
Despite these challenges, Burberry reported better-than-expected financial results, narrowly avoiding a loss for the 2025 fiscal year.
The layoffs are part of a turnaround strategy led by CEO Joshua Schulman, who took over last year and has since shifted Burberry’s focus toward core products like trench coats and scarves.
Reasons Behind the Job Cuts at Burberry
Burberry’s financial struggles have been exacerbated by product missteps, excessive price hikes, and a global luxury downturn.
The company reported a £3 million loss for the year ending March 29, 2025, a sharp decline from its £418 million profit the previous year.
Sales figures indicate a 12% drop in retail comparable store sales, with a 16% slump in Asia dragging down overall performance.
The company’s fourth-quarter sales fell by 6%, though this was slightly better than analysts’ expectations of a 7% decline.
To counter these losses, Burberry aims to achieve £100 million in annual savings by 2027, with a significant portion coming from reductions in workforce-related costs.
Impact on Employees and Operations
The 1,700 job cuts will mainly impact head office roles, with London being the most affected location.
Store employees and workers at Burberry’s Castleford factory in West Yorkshire will also face layoffs.
The company has confirmed that night shifts at the factory will be scrapped, citing overcapacity issues.
Burberry stated that the layoffs are part of organizational changes designed to ensure the company is “fit for the future”.
While the restructuring aims to streamline operations, it will also reduce Burberry’s global workforce by nearly 18%.
Burberry CEO’s Vision and Market Outlook
Despite the challenges, CEO Joshua Schulman remains optimistic about Burberry’s future.
He emphasized that Burberry is still in the early stages of its turnaround. However, he remains confident that the company’s best days are ahead.
Joshua’s strategy aims to revive Burberry’s heritage by emphasizing its iconic designs.
He is particularly focused on outerwear and scarves, which have maintained strong market resilience.
The company plans to increase the frequency and reach of its marketing campaigns as its Autumn and Winter collections arrive in stores.
Burberry faces additional challenges as consumer spending declines in the U.S. Geopolitical uncertainties could further impact its global operations.
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