Burberry to Slash 1,700 Jobs in Big Cost-Cutting Drive
British luxury giant Burberry is set to axe up to 1,700 jobs worldwide as part of a radical cost-cutting plan. The move comes after the fashion house reported a shocking £3 million loss for the year ending March 29, 2025.
The company plans to boost its annual savings target to £100 million by 2027, focusing heavily on cutting “people-related costs.” These job cuts will roll out over two years under the leadership of CEO Joshua Schulman.
Profits Dive as Asia Sales Collapse
Burberry’s profits took a nosedive from a tidy £418 million gain the previous year to a £3 million loss. Retail sales dropped by 12%, with a massive 16% slump hitting Burberry’s vital Asian markets.
CEO Schulman remained positive despite the grim figures: “While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry’s best days are ahead and that we will deliver sustainable profitable growth over time.”
From Heritage to Hooliganism and Back
Founded in 1856 by Thomas Burberry, the brand carved its name on luxury trench coats and British high fashion. But Burberry’s image took a hit in the 1980s and 1990s when it became infamous for its association with football hooliganism.
More recently, the company has made a determined effort to reclaim its posh reputation, revamping its product range and marketing to recapture luxury status.
What Lies Ahead?
The restructuring aims to trim operations to survive a tough global retail climate. Industry experts warn the cuts could boost short-term finances but risk harming staff morale and operational strength.
Burberry’s woes mirror wider issues in luxury retail, with many brands struggling as consumer spending, especially in Asia, slows down.
