Burberry Plans to cut 1,700 jobs

On Wednesday 14 May, Burberry reported a net loss of £75 million (€89 million) for its financial year ending in March. This contrasts with last year's profit of £270 million.

To reduce costs, the British brand plans to implement new cost-cutting measures worth £60 million (€71 million) by 2027, in addition to the £40 million previously announced. As a result, 1,700 jobs worldwide are at risk of being cut, representing 18% of the company's 9,300 employees.

Its turnover fell by 17% to £2.5 billion, but its CEO, Joshua Schulman (appointed last July), remains very optimistic about the future. “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 said in a statement.

Investors also see this as positive momentum, considering that the brand is in the early stages of its recovery plan while remaining aware of the long road ahead. Its share price even soared on Wednesday (+9% on the London Stock Exchange shortly after 8 a.m. GMT).

For many months, the brand has suffered from a lack of interest in its products in China and poor strategic choices. Last November, Burberry announced that it wanted to refocus on its flagship products, such as its famous trench coat and scarves.