Burberry to Cut 1,700 Jobs Amid £66m Loss, Targets £100m Annual Savings by 2027
By: Rebecca Okine
British luxury fashion house Burberry is launching a sweeping cost-cutting drive aimed at saving £100 million annually by 2027, as it grapples with mounting financial losses and a global slowdown in demand for high-end goods.
The iconic brand, best known for its trench coats and signature check pattern, reported a £66 million loss in its most recent financial year. As part of its turnaround strategy, Burberry plans to lay off up to 1,700 employees worldwide—nearly 20% of its global workforce—with the majority of cuts expected to affect head office roles.
Chief Executive Joshua Schulman, who took over leadership in July 2024, said the job cuts are a difficult but necessary step to safeguard the company’s long-term future.
“This change is about protecting our future,” Mr. Schulman said. He acknowledged the pain associated with the layoffs but emphasised that they are essential to enable Burberry to reinvest in core manufacturing and streamline global operations.
One of the key changes will impact the company’s Castleford factory in West Yorkshire, where Burberry produces its renowned trench coats—some of which sell for more than £10,000. The factory will see the elimination of night shifts and a reorganisation of staff rotas due to long-standing overcapacity issues. Despite the restructuring, Mr. Schulman pledged a “significant investment” in the site during the second half of the year to modernise production.
The company’s broader savings plan includes reducing real estate expenses, optimising procurement, and adjusting retail staffing levels to better align with peak customer traffic. Burberry noted that all proposed changes are “subject to consultation where applicable.”
This latest initiative expands on a £40 million cost-saving plan announced in November 2023, reflecting the company’s ongoing efforts to regain stability amid persistent global economic uncertainty and shifting consumer behaviours in the luxury market.
Despite the challenges, Mr. Schulman expressed cautious optimism about the future.
“The resilience of our outerwear and scarves reminds us where our greatest authenticity lies. While we’re still early in our turnaround journey, I believe Burberry’s best days are ahead,” he said. Founded in 1856, Burberry has been manufacturing raincoats in Yorkshire since 1972—a tradition the company says it is committed to preserving even as it tightens operations across the board.
