Luxury fashion house Burberry has announced plans to cut approximately 1,700 jobs globally as part of a cost-saving strategy aimed at reducing expenses by 2027.
The iconic British brand—best known for its signature camel, red, and black check pattern—revealed the proposed cuts on Wednesday while reporting a £66 million loss for the last financial year.
The reduction, which could impact nearly 20% of its global workforce, includes potential layoffs at its Castleford factory in West Yorkshire.
CEO Joshua Schulman said that most of the job losses would affect head office teams around the world, though the majority would be in the UK, where Burberry employs the most staff.
He also confirmed changes to staffing schedules, including the elimination of night shifts at the Castleford site, which produces trench coats ranging from £1,000 to £10,000.
“We’ve had surplus capacity at the factory for quite some time, and that’s not sustainable,” Schulman said. “But to be clear, these changes are intended to protect UK manufacturing, and we’re planning a major renovation of the facility in the second half of the year.”
Burberry also plans to better align staff hours with peak shopping times in its stores, which will lead to further job reductions. Additional savings will come from more efficient procurement practices and real estate cost reductions.
The company said the job cuts are subject to consultation processes where applicable.
Founded in 1856, Burberry has produced its renowned raincoats in Yorkshire since 1972. This latest cost-cutting plan follows a £40 million savings initiative announced in November and brings its total targeted annual savings to £100 million by spring 2027.
Schulman, who became CEO in July 2024, emphasized the brand’s enduring strength in outerwear and scarves: “Our resilience in these categories reinforces my belief that our greatest potential lies in areas where we have genuine heritage.”
“While economic conditions remain challenging and we’re still early in our turnaround, I’m more confident than ever that Burberry’s best days lie ahead,” he added.
‘Bold moves’
Russ Mould, investment director at AJ Bell, called Burberry’s restructuring “a series of bold moves in its ongoing recovery.”
He noted that Schulman—formerly of Coach and Jimmy Choo—was taking the traditional route of cutting costs, including significant workforce reductions.
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“Efforts to position Burberry as a more premium brand haven’t delivered, so returning to its roots in classic outerwear under Schulman is a sensible move,” Mould said.
Schulman succeeded Jonathan Akeroyd, who had attempted to elevate the brand’s luxury appeal before sales declined. Upon Akeroyd’s departure, chairman Gerry Murphy said Burberry would take “decisive steps to refocus on core customers while still offering fresh, relevant products.”
Burberry has struggled with weakening demand for luxury goods, particularly in markets such as China and the Americas, which saw the steepest sales declines last year.
