Burberry has announced plans to cut around 1,700 jobs globally, approximately 20% of its workforce, as part of a broader strategy to reduce costs and reposition the brand for long-term growth.
The job cuts are expected to be concentrated in office-based roles and include closing a night shift at the company’s trench coat factory in Castleford, West Yorkshire. The reduction will occur over the next two years and contribute significantly to an increased annual savings target of £100 million by FY27, up from a previous target of £40 million.
The restructuring comes as CEO Joshua Schulman, who joined the company in 2023, continues efforts to reverse Burberry’s underperformance in the global luxury market. His turnaround strategy is focused on reinforcing the brand’s British heritage and prioritising core products like trench coats and scarves. These changes follow previous missteps, including overpricing and inconsistent product lines, compounded by broader market weakness.
Burberry reported a stronger-than-expected recent performance, citing increased wholesale orders following its February fashion show. The positive momentum in sales and the cost-cutting announcement triggered an 18% rise in the company’s share price.
This is the company’s fourth leadership change in a decade. Past strategies under different CEOs attempted to elevate Burberry into the top tier of luxury fashion but delivered limited financial results. The current approach aims to stabilise operations, cut excess, and refocus on profitability.
