Burberry to Cut 1,700 Jobs Globally
The luxury fashion brand Burberry will cut nearly 20 percent of its global workforce, or approximately 1,700 jobs, in an effort to cut costs and return to profit, multiple news outlets reported Wednesday. The British company said in a press release Wednesday it expected to save 60 million pounds by fiscal year 2027 as a result of what it's calling "organizational changes." Burberry didn't specify whether any leadership changes or restructuring was expected.
"After a challenging first half, we've moved at pace to implement Burberry Forward, our strategic plan to reignite brand desire, improve our performance, and drive long-term value creation," CEO Joshua Schulman said in the press release sharing preliminary results of the last 12 months.
News outlets reported that shares to Burberry jumped as high as 18 percent following the announcement. The company reported fourth-quarter comparable sales were down 6 percent.
Total Retail's Take: Schulman, formerly of Coach and Jimmy Choo, took over as CEO of Burberry last year. Reuters reported he shifted Burberry's strategy to focus more on marketing "Britishness," trench coats, and scarves, following years of struggling as luxury spending dropped.
Schulman said he was "more optimistic than ever that Burberry’s best days are ahead" and that the company would deliver sustainable profitable growth over time. Reuters reported that the U.S. accounts for 19 percent of Burberry's business, according to the company's CFO, Kate Ferry. Asked about the uncertainty of tariffs, Ferry told reporters Burberry has the "levers to mitigate it."
Marie Albiges is the managing editor for Women in Retail, Total Retail, and Women Leading Travel & Hospitality. She is responsible for content development, management and production for the group. Marie is a former journalist, a travel aficionado, a French native and fitness enthusiast who lives in Philadelphia with her partner, stepdaughter and dog.
