Burberry announces massive job cuts over £66m Loss

World fashion giant Burberry, has announced plans to cut up to 1,700 jobs globally following a disappointing financial year.

The British luxury fashion house reported a £66 million loss for the last financial year ending March 2025.

Burberry said the job cuts will mostly affect head office roles and support staff across global locations, especially in the UK.

Castleford factory in West Yorkshire may also see layoffs, as the company restructures its production operations.

The company confirmed it will eliminate night shifts at Castleford due to persistent overcapacity in manufacturing schedules.

CEO Joshua Schulman said the move supports long-term protection of UK-based manufacturing and factory sustainability.

Despite the cuts, Burberry plans to renovate the Castleford site later this year as part of a strategic investment.

The factory has produced Burberry’s iconic trench coats, priced between £1,000 and £10,000, since 1972.

Schulman said the new strategy aims to increase efficiency and align operations with actual customer demand.

The company will adjust rotas and job roles to better match peak traffic hours in physical stores.

Retail analysts say the restructuring targets both cost reduction and increased productivity at all levels of the business.

Burberry seeks to save £100 million annually by spring 2027 through job cuts and operational streamlining.

These savings build on a £40 million cost-saving plan announced in November 2024.

The company is also working to cut procurement expenses and optimise its use of office and retail real estate.

Burberry cited weaker global demand, especially in China and North America, as key reasons behind falling sales.

The luxury market has been under pressure due to inflation, geopolitical risks, and shifting consumer preferences.

Former CEO Jonathan Akeroyd had attempted to reposition Burberry further upmarket during his tenure.

That strategy failed to reverse declining sales, prompting a leadership shift and strategic reset in 2023.

Schulman, who joined in July 2023, is now focusing on Burberry’s traditional strengths.

He confirmed renewed investment in heritage product lines such as trench coats and classic scarves.

He said customer loyalty remains strongest where the brand’s identity is most authentic and long-established.

Burberry plans to reduce fashion experimentation and streamline collections around best-selling core items.

The job reductions come as part of a global realignment to secure future growth in a challenging market.

Russ Mould of AJ Bell called the move “radical but necessary” to stabilise finances and rebuild market confidence.

Founded in 1856, Burberry is among the UK’s most iconic luxury brands, with a strong legacy in outerwear.

The company will now focus on legacy, efficiency, and sustainable profitability amid intense competition.

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