Burberry is looking to make £100million of savings per year by the 2027 financial year – up from the £40million it was previously targeting
Burberry has warned it could cut up to 1,700 jobs worldwide. The luxury fashion brand is looking to make £100million of savings per year by the 2027 financial year – up from the £40million it was previously targeting.
The company said the “reduction in people-related cost…could impact around 1,700 roles globally over the life of the programme, subject to consultation where applicable”.
It comes after the British brand revealed its latest financial results, where it reported an operating loss of £3million in the year to March 29, compared with a profit of £418million the previous year.
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However, the loss is smaller than the £11million that had been anticipated by analysts. Its retail store sales fell 12% year-on-year, with a 16% slump in sales across Asia. Burberry is famous for its check print and has its flagship store on Regent Street.
Chief executive Joshua Schulman told investors: “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.”
He continued: “With improvement in brand sentiment, we will be ramping up the frequency and reach of our campaigns as our Autumn and Winter collections arrive in store.
“The continued resilience of our outerwear and scarf categories reaffirms my belief that we have the most opportunity where we have the most authenticity.“
The company hired former Coach and Jimmy Choo chief executive Joshua Schulman last July, replacing Jonathan Akeroyd who was axed after two years in the role.
Burberry had already been struggling against a slump in demand among shoppers in China, one of its biggest markets, which has been dragging heavily on sales.
However, the company told investors at the beginning of the year it was moving with “urgency” to turn the business around and return to profit.
The brand has launched new marketing campaigns over the past year, enlisting the likes of actors Olivia Colman and Barry Keoghan.