Top fashion brand Burberry would lay off some 1,700 workers as part of measures to reduce operating costs, officials of the company have said.
Reports indicate that the company lost £66 million in the previous financial year, and that perhaps has informed its latest decision.
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Speaking to some outlets, Joshua Schulman, the company’s chief executive, explained that the majority of job losses would come from its head office teams around the world and that the cuts would “naturally” be focused in the UK, where most staff members were based.
Measures, including scrapping of the night shifts at the factory, have been announced. Analysis shows that the job cuts would lead to a reduction in the company’s global workforce by almost a fifth.
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“For a long time we have had overcapacity at that facility, and that is simply not sustainable,” Mr. Schulman was quoted.
“But I want to be very clear that we are making this change to safeguard our UK manufacturing, and in fact we will be making a significant investment to renovate this factory in the second half,” he added.
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Burberry was founded in 1856 and is noted worldwide for its exquisite variety of apparel. In 2024, the brand changed its leadership as sales continued to fall.
The company, at the time, said it was looking at cutting jobs and that if the trends continued, profits “will be below expectations.”
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Gerry Murphy, chairman of the company, had stated that falling sales figures were “disappointing” and “proving more challenging than expected” and that the brand was “taking decisive action to rebalance.”
