Latest news with #jobcuts
The Guardian
7 hours ago
- Business
- The Guardian
Burberry pays new boss almost £2.6m in his first nine months while cutting workforce
Burberry has paid its new boss Joshua Schulman almost £2.6m in his first nine months in the job, including £380,000 in house moving costs, as the ailing British brand announced hundreds of job cuts. The company also handed former boss Jonathan Akeroyd a pay-off worth about £1.5m – a year's notice including salary, pension and cash benefits – after he exited the company in July last year, according to the group's annual report. The former Versace boss exited less than three years after he was appointed in 2021. This year Schulman could earn up to £5.6m if he meets bonus targets, excluding a £3.6m potential bonus if he doubles Burberry's share price with the aim of re-entering the FTSE 100. He is also in line for a further £25,000 a month in 'housing allowance' for just over a year on top of £135,171 to help him find a new home, £120,655 towards transporting his effects from New York, where he previously lived, and five months of housing allowance already paid. In his first nine months, Schulman was handed a £1.2m bonus on top of his £1.356m in fixed salary which included the moving allowances. The chunky payments to senior directors come despite Burberry announcing plans to slash 1,700 jobs worldwide by 2027 – including removing the entire night shift of 170 people at its Yorkshire raincoat factory – in a bid to tackle sliding profits. The company announced the plan earlier this month as it revealed it had dived to an annual loss of £66m, from a profit of £383m a year before, as it struggled in a troubled global luxury goods industry after a series of strategic missteps. Schulman, the former boss of the US fashion brand Coach, was hired as chief executive last year in an attempt to turn around Burberry's fortunes. The group's share price has risen almost 50% since he was appointed despite fears about the effect of Donald Trump's plans for import tariffs and the effect on both US and Chinese consumer spending. Earlier this month Schulman announced a plan to cut about a fifth of Burberry's global workforce to bring £60m in additional cost savings on top of a £40m savings programme that he had unveiled in November. The annual report shows Burberry has already been reducing its workforce with the number of employees down by more than 870 to 8,459 year-on-year. Burberry's directors said in the report that they had consulted with shareholders about the level of Schulman's pay. 'The majority of shareholders appreciated the circumstances of Josh's recruitment and were supportive of the design of Josh's ongoing remuneration arrangements, the approach to his annual bonus for [the last year] and his recruitment award.' They said directors were 'mindful of the feedback received from some of our shareholders during the consultation and took this into account when determining the final level of bonus payout'.
BBC News
8 hours ago
- Business
- BBC News
Durham University staff vote for more strike action
Staff at Durham University have voted to take further industrial action in an ongoing row over job cuts. Members of the University and College Union (UCU) have announced plans for three additional walkouts in UCU said it followed what it described as management's rejection of its recent offer to pause strike action if "no compulsory redundancies could be guaranteed until the end of the calendar year".Durham University called the move "unnecessary", insisting there were "no current plans for redundancies". The strikes will take place on 13, 14 and 19 June. 'Needless hostility' Earlier this year, UCU members at Durham overwhelmingly backed industrial action in opposition to the university's plans to slash millions of pounds from its budget, putting 200 jobs at union said the cuts were targeting professional services and support staff who provide the backbone infrastructure that allowed the facility to run general secretary Jo Grady accused the university of "needless hostility" over its refusal to rule out compulsory redundancies. She said staff had already made "huge sacrifices to deliver the vast majority of savings through voluntary means". "All that remains is a small gap that could easily be managed without threatening jobs, but instead of offering reassurance management has chosen provocation."Our members will not stand by while livelihoods hang in the balance and the ball is now in the university's court." A Durham University spokesperson said the action was "unnecessary". "We have tried strenuously to ensure financial savings can be made through voluntary means," they said."Durham UCU know there are no current plans for redundancies and we will continue to work constructively with our four trade unions to ensure the university's financial sustainability."They added any examinations would not be affected by the proposed strike dates and students would be kept updated on any important developments. Follow BBC North East on X, Facebook, Nextdoor and Instagram
Telegraph
10 hours ago
- Business
- Telegraph
Burberry boss paid £400,000 to move house after sacking 1,700 staff
Burberry's new chief executive has been handed a £380,000 allowance to help fund his move from New York to London. Joshua Schulman was given the perk as part of his joining package last July, when he was parachuted in to help revive the ailing luxury fashion retailer's fortunes. This included £135,000 for temporary accommodation and £120,000 for 'home search assistance and transportation of goods'. He was also given access to a monthly £25,000 housing allowance that he can draw upon for 18 months. Five months of the allowance have already been used, according to company filings, amounting to £125,000. Since taking over at Burberry, Mr Schulman has been tasked with spearheading a radical turnaround aimed at restoring profits. This led to him unveiling plans earlier this month to cut around 1,700 jobs, accounting for 20pc of the company's global workforce. Burberry's annual report shows its workforce has already been shrinking. Over the last financial year it fell from 9,336 to 8,459. The Telegraph revealed in July that the business was preparing to sack hundreds of staff across its UK offices. As well as receiving a lucrative housing allowance, Mr Schulman has also been handed a £1.2m annual salary. In total, he received £2.56m during his first nine months in the job. He is not alone in receiving a relocation allowance after being appointed as chief executive of a London-listed company. Luis Gallego, chief executive of British Airways owner International Airlines Group, was previously given £500,000 to help him pay for his homes in Madrid and London. Trade war hits sales Mr Schulman's turnaround plan, which has been dubbed Burberry Forward, aims to focus the high-end brand on the 'spirit of Britain'. He said late last year that he would revive Burberry, which was founded in 1856, by emphasising its 'quintessentially British' heritage. However, Donald Trump's trade war and a slowdown in China have dampened sales in recent months, with Burberry sinking to a £66m loss in the year to April from revenues of £2.4bn. Following the results in May, 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.' Optimism surrounding Mr Shulman's turnaround plan has lifted Burberry's share price by 13c over the past six months, giving the company a market cap of £3.7bn. Burberry was contacted for comment.
Globe and Mail
11 hours ago
- Business
- Globe and Mail
Walmart Layoffs 2025: Should You Sell WMT Stock as Tariffs Drive the Retailer to Job Cuts?
Over the past year, retail giants have been navigating a perfect storm of rising costs, shifting consumer habits, and geopolitical headwinds, putting even the most resilient chains under pressure. While Walmart (WMT) has long been viewed as a bulwark against inflation thanks to its scale and low‐price positioning, escalating tariffs threaten to squeeze margins and force difficult decisions. In late May, Walmart announced plans to cut roughly 1,500 corporate jobs as part of a broader restructuring effort aimed at 'removing layers and complexity, speeding up decision‐making and helping associates innovate rapidly,' according to a memo from CTO Suresh Kumar and U.S. CEO John Furner. The layoffs, focused on its global tech teams, advertising arm, and e-commerce fulfillment operations, come alongside warnings that the retailer will have to raise prices if the highest‐impact tariffs remain in place. MarketWatch reports that the job cuts are 'another way to deal with tariffs.' For investors weighing whether to hold or sell WMT stock, these moves could signal both short‐term headwinds and long‐term efficiency gains. Here's what to consider before deciding. About WMT Stock Walmart is an American retail powerhouse operating supercenters, discount department stores, and extensive grocery outlets worldwide. Over the past few decades, the company has grown into the largest retailer by revenue, known for its everyday low-price strategy. Currently, it owns 10,771 stores and clubs across 24 countries. With a market capitalization of about $780 billion, Walmart's shares slid more than 22% from mid-February through early April as investors braced for tariff headwinds. Since hitting a low of $81 in early April, however, the stock has rallied by over 20% to around $97. Overall, the stock is up approximately 8% year-to-date, outperforming the broader market. In terms of valuation, Walmart is currently trading at premium levels. Its trailing price-earnings ratio of 38x is significantly higher than the sector median of 16.5x as well as its historical norms of 26x. This means investors expect above-average growth but have less room for error. Walmart Delivered Mixed Q1 Results On May 15, the retail giant reported its Q1 results for fiscal year 2026. Despite beating earnings estimates, it was the weakest quarter since 2022. Walmart posted adjusted EPS of $0.61 that topped the $0.58 consensus by 5%, while revenue of $165.6 billion fell just shy of the $165.84 billion forecast. Notably, inventory climbed nearly 4% year over year, marking the first time since early 2022 that stockpiles have outpaced revenue growth, a reversal of the retailer's typical business cadence. The e-commerce business reported revenue growth of 20% and turned profitable this quarter, thanks to higher delivery density, with U.S. and Sam's Club online operations in the black and international channels slightly unprofitable. Meanwhile, Walmart Connect, the company's advertising business, jumped 31% in the U.S. and 50% globally, highlighting its margin-rich contribution amid pressure on core retail margins. Looking ahead, management reaffirmed full-year fiscal 2026 guidance for 3%–4% sales growth and expects Q2 sales to rise 3.5%–4.5%. What Do Analysts Think About WMT Stock? Wall Street analysts remain highly optimistic about Walmart's growth prospects, as reflected in a consensus 'Strong Buy' rating. Of 38 covering the stock, 32 rate it a 'Strong Buy,' five a 'Moderate Buy,' and one a 'Hold,' with no 'Sell' recommendations. The average 12-month price target is $108.79, implying roughly 11% upside potential from here. The Bottom Line Walmart's 2025 corporate cuts and tariff-driven price hikes aim to shore up margins and boost efficiency, but risk straining staff and testing consumer loyalty. Strong e-commerce results, solid guidance, and widespread analyst support suggest WMT remains a buy-and-hold pick for those weathering near-term volatility.
Bloomberg
11 hours ago
- Business
- Bloomberg
TikTok Shop Cutting More Indonesia Jobs After Taking Over Rival
ByteDance Ltd. 's e-commerce arm TikTok Shop is eliminating several hundred jobs in Indonesia in its latest round of cuts, slashing costs after taking over the operations of local rival Tokopedia last year. The Chinese social media giant is reducing staff across e-commerce teams including logistics, operations, marketing and warehousing, according to people familiar with the matter. More cuts are set to happen as soon as July, said one of the people, who asked not to be identified because the discussions haven't been made public. The reduction leaves Tokopedia and TikTok Shop with about 2,500 employees in total in Indonesia.
