Burberry Plans 1,700 Job Cuts Amid Profit Slump

Burberry, the British luxury fashion brand, announced plans to cut approximately 1,700 jobs globally as part of a strategic effort to reduce costs and return to profitability amid a significant slump in sales and profits. CEO Joshua Schulman criticized prior attempts to expand beyond Burberry's core trench coat heritage, signaling a refocus on its iconic products and UK manufacturing, including eliminating the night shift at its Castleford factory with planned renovations to safeguard local production. The job cuts, which represent about 20% of the workforce, will primarily affect head office roles and some retail adjustments, aiming to achieve £100 million in annual savings by 2027 under the Burberry Forward plan. Despite revenue dropping 17% in fiscal 2025, the company noted some sales improvement in the second half of the year following brand repositioning and product focus. Industry experts warn Burberry faces an identity challenge and emphasize the need for strategic reinvestment in creativity and cultural leadership beyond cost-cutting measures. The cuts come amid broader luxury market pressures, with other brands also undertaking restructuring to navigate changing consumer demand.