Burberry to chop 1,700 jobs as designer suffers heavy losses | EUROtoday

Luxury trend agency Burberry has mentioned it might minimize some 1,700 jobs as a part of plans to scale back prices by 2027.

The British designer model – famed for its distinctive camel, pink and black verify sample – introduced the proposed financial savings on Wednesday because it reported a £66m loss within the final monetary yr.

The proposed job cuts would scale back its world workforce by virtually a fifth and embody potential redundancies at its Castleford manufacturing unit in West Yorkshire.

Burberry chief government Joshua Schulman mentioned nearly all of job losses would come from its head workplace groups all over the world, however mentioned the cuts would “naturally” be centered within the UK, the place most of its employees are based mostly.

He confirmed employees rotas can be reorganised and that night time shifts at its manufacturing unit in Castleford, which makes trench coats priced from £1,000 to £10,000 every, can be scrapped.

“For a long time we have had overcapacity at that facility, and that is simply not sustainable,” Mr Schulman mentioned.

“But I want to be very clear that we are making this change to safeguard our UK manufacturing, and in fact we will be making a significant investment to renovate this factory in the second half.”

Burberry mentioned it will align “schedules with peak store traffic” in its retailers, which might end result within the discount of some jobs.

It added financial savings would additionally come from “operating expenses, with increased efficiency of spend in procurement and real estate”.

The firm mentioned the cuts have been “subject to consultation where applicable”.

Burberry was based in 1856 and has been making its well-known raincoats in Yorkshire since 1972.

The designer model beforehand introduced £40m cost-savings programme in November, that means it now plans to create the mixed annualised financial savings of £100m by Spring 2027.

“The continued resilience of our outerwear and scarf categories reaffirms my belief that we have the most opportunity where we have the most authenticity,” mentioned Mr Schulman, who was appointed chief government in July final yr.

“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,” he added.