Burberry, the fashion brand, could eliminate 1,700 jobs in order to cut costs by 2027.
Today (14 May), the company reported its financial results, which showed a loss of PS66 million for the last financial year. The company’s profit was PS383 millions in the previous financial year.
Redundancies are proposed to reduce its global workforce of around a fifth. This could affect workers in its Castleford factory, located in West Yorkshire. The company hasn’t yet indicated where the shop closings will be.
Joshua Schulman, chief executive, said that as part of a cost-cutting initiative, the staff rotas would be reorganized and night shifts would be eliminated. He added that shop staff would be scheduled to coincide with peak traffic, so they could be available during the busiest hours.
He told investors that the company would not be closing any stores, but “significant” investments would be made in its manufacturing facilities for a larger production.
Schulman said that the company will “rebalance” its central and region responsibilities in order to reduce duplication of effort and speed up decision-making.
He stated that “the external environment has become more difficult since mid-February”, hinting at the imposition of tariffs , by US President Donald Trump, had been more harmful than expected.
Another factor was 2021’s decision to eliminate VAT refunds to overseas visitors in the UK. This has made the UK a less attractive shopping destination.
He added that “business in our UK domestic market continues to be severely impacted.”
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