British luxury fashion house Burberry has announced plans to cut up to 1,700 jobs worldwide in a sweeping cost-cutting drive aimed at restoring profitability following a £3 million loss for the financial year ending March 29, 2025.
The company said it would increase its annual savings target to £100 million by 2027, with a large portion of the cuts focused on “people-related costs.” The job reductions will occur over a two-year period and form part of a broader turnaround strategy under chief executive Joshua Schulman.
Profits Plunge as Asia Sales Slide
Burberry’s financial results mark a significant downturn from the £418 million profit it recorded the previous year. The latest figures reflect a 12% drop in comparable retail sales, including a 16% slump in Asia, its most crucial international market.
Despite the grim numbers, Schulman remains upbeat:
“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.”
Brand History and Cultural Impact
Founded in 1856 by Thomas Burberry, the company built its reputation on high-end outerwear like trench coats, evolving into a symbol of British luxury. However, during the 1980s and 1990s, the brand became controversially associated with football hooliganism, tarnishing its upscale image for a time.
Under recent leadership, Burberry has worked to reclaim its luxury positioning while modernising its product line and marketing strategy.
Future Outlook
The brand’s restructuring plans aim to streamline operations while navigating a challenging global retail environment. Analysts suggest the cuts may improve short-term financials but warn of potential risks to staff morale and operational capacity.
The announcement comes amid broader industry struggles, with several luxury retailers reporting slowdowns in consumer spending, particularly in Asia.
