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Burberry Plans to Cut Numerous Jobs in a Bid to Reduce Costs


Burberry Plans to Cut Numerous Jobs in a Bid to Reduce Costs

Renowned fashion house Burberry is gearing up to downsize its workforce by hundreds of employees as part of an effort to trim expenses in response to a decrease in earnings.

The company’s market capitalization has plummeted by over a third since the start of the year, prompting worries that it might be delisted from the FTSE 100 index, as detailed by The Telegraph.

At a virtual meeting held via Zoom in late June, staff members were informed about the restructuring scheme, with some possibly facing layoffs or having to reapply for their current positions.

Burberry has launched a 45-day period for consultation, hinting that a substantial number of roles could be axed, particularly impacting its UK offices.

While the exact count of affected employees has not been made public by Burberry, it is approximated that roughly 400 positions might be eradicated, based on statements from employees.

This move comes in the wake of Burberry’s recent struggles to enhance its financial performance, marked by a 36% decrease in annual profits to £418m and a 4% dip in sales. CEO Jonathan Akeroyd recognized the challenges of implementing their strategy in a tough luxury market environment.

Image Source: William Barton / Shutterstock

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