Burberry to cut 1,700 jobs
Burberry is to cut 1,700 jobs over the next two years as it battles to reduce costs after tumbling to a £66m loss.
The British fashion house said it aimed to save an extra £100m by the end of the 2027 financial year, partly through cutting around 18pc of its global workforce.
It came as the company revealed it had swung to a £66m loss in the year to April compared with profit before tax of £383m a year earlier. Revenues tumbled 17pc to £2.4bn, while like-for-like sales fell by 12pc.
Joshua Schulman, Burberry's chief executive, who unveiled a turnaround plan for the business in November, admitted it had struggled after a 'challenging first half' of its financial year.
The luxury fashion brand, which was founded in 1856, said it would take an £80m hit over the next two years as it follows through with the jobs cuts, as well as efforts to cut expenses in procurement and real estate.
The company also warned the 'current macroeconomic environment has become more uncertain' after Donald Trump upended global trading relationships with his tariff campaign.
Mr Schulman took over as chief executive last July after years of failed attempts to improve sales under his predecessor, Jonathan Akeroyd.
Between early 2023 and Mr Schulman taking over, Burberry's shares dived by more than 70pc. They have fallen 15pc so far this year.
The company has struggled with a downturn in China, with lower sales in Asia the biggest drag on its performance last year.
Mr Schulman's turnaround plan, which has been dubbed Burberry Forward, aims to focus the brand on the 'spirit of Britain'.
The chief executive pointed to the 'continued resilience of our outerwear and scarf categories' as he tries to boost the popularity of the brand's classic trench coats, which cost about £2,000.
However, analysts at Jefferies said the latest figures showed Burberry's turnaround plan was in 'slow-burn mode'.
Mr Schulman said: '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.'
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