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52m ago

Burberry Announces 1,700 Job Cuts Following £66 Million Annual Loss

The British luxury brand plans to save £100 million by 2027 through workforce reductions and operational restructuring as it tackles declining sales and revenue.

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Overview

  • Burberry reported a £66 million pre-tax loss for the year ending March 29, 2025, a sharp decline from a £383 million profit the previous year.
  • The company plans to cut 1,700 jobs globally, equating to nearly 18% of its workforce, with the majority of reductions coming from office-based roles in the UK.
  • Retail comparable store sales fell 12%, while revenue dropped 17% to £2.46 billion, driven by weakened demand in China and broader luxury market challenges.
  • CEO Joshua Schulman emphasized the brand's 'Burberry Forward' strategy, which focuses on core products like trench coats and scarves, alongside a renewed investment in marketing.
  • Despite the downturn, Burberry shares rose nearly 10% following the announcement, reflecting investor optimism about the restructuring and cost-saving measures.