• Burberry plans to cut 1,700 jobs by 2027 to reduce costs after reporting a £66 million loss, with most cuts affecting its UK operations.
• The luxury brand aims to focus on core products like outerwear while optimizing expenses.

Burberry Faces Financial Struggles

Luxury fashion giant Burberry has announced plans to cut approximately 1,700 jobs as part of a strategy to reduce costs by 2027. This decision comes after the British designer brand reported a staggering £66 million loss in the last financial year.

The proposed job cuts will impact nearly a fifth of Burberry’s global workforce, with a significant focus on its UK operations. The iconic brand, known for its signature camel, red, and black check pattern, aims to streamline its operations amid challenging economic conditions.

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Focus on UK Manufacturing

Burberry’s Castleford factory in West Yorkshire, known for producing high-end trench coats, will see notable changes. Chief Executive Joshua Schulman confirmed the factory’s night shifts would be discontinued due to overcapacity concerns. He emphasized that these adjustments aim to protect UK manufacturing, with plans for significant investments to modernize the facility in the second half of the year.

Global Cost-Cutting Measures

The majority of job cuts will affect Burberry’s head office teams worldwide. Schulman highlighted that the company would focus on aligning staff schedules with peak store traffic, optimizing spending on procurement, and reducing real estate costs. These measures are part of a broader strategy to achieve £100 million in annualized savings by Spring 2027.

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Striving for a Turnaround

Despite the losses and planned job cuts, Schulman remains optimistic about Burberry’s future. He believes that the brand’s core strengths in outerwear and scarves offer significant growth potential. While facing a tough macroeconomic environment, Schulman expressed confidence that Burberry’s best days lie ahead.

Burberry’s journey toward recovery comes after a turbulent period of declining sales and leadership changes. As the luxury brand navigates these challenges, its focus on core products and cost efficiency may determine its path to stability.