Articles > Burberry to Cut 1,700 Jobs as Company Faces Profit Slump
- Burberry plans to cut almost one-fifth of its workforce to tackle a luxury slump
- Burberry reported a 117% drop in annual profits over the past financial year
- Analysts are impressed with the company's turnaround efforts and cost-cutting targets
- The London-based company's push into high fashion has not been successful
- Burberry expects the job cuts to save £100 million in two years
Burberry, the renowned British luxury brand famous for its iconic checkered pattern and stylish trench coat, has made the difficult decision to potentially lay off around 1,700 employees worldwide as part of a significant cost-cutting strategy. This news comes on the heels of Burberry revealing a staggering 117% decrease in annual profits, totaling around $87.8 million (£66 million), for the last financial year.
Despite the challenging financial results, Burberry Group PLC (LSE:BRBY) shares soared over 15% following the announcement, with investors and analysts praising the company's impressive fourth-quarter performance and ambitious cost-cutting goals. Deutsche Bank highlighted Burberry's progress in its brand revitalization, particularly in outerwear and scarves sales, although leather goods sales were weaker.
The brand's attempt to venture into high fashion under the leadership of new CEO Joshua Schulman has not gone as planned, as global luxury demand has declined. In response, Burberry has decided to reduce its workforce by nearly one-fifth in an effort to steer the company back on track.
As part of its broader restructuring strategy due to the ongoing slump in the luxury sector, Burberry is pushing forward with its plan to cut up to 1,700 jobs, citing a shift in consumer spending habits. The company's recent financial results indicated signs of improvement in the second half of the year, although it reported a loss and faced challenges from an uncertain economic climate.
Amid the sales decline, Burberry has unveiled various organizational changes aimed at driving the turnaround efforts within the struggling luxury brand. The company anticipates that these measures could result in a reduction of approximately 1,700 jobs globally over the program's duration, concluding in 2027.
Despite the turbulent times Burberry has faced, the brand surprised many by exceeding expectations with its fourth-quarter sales and adjusted operating profit for the full year. Burberry expressed optimism as it noted that brand sentiment was on the rise, indicating a potential shift in the right direction for the iconic British label.
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Burberry to Cut 1,700 Jobs as Company Faces Profit Slump
By KlickAnalytics Data Insights | May 14, 2025 08:03PM ET
Key Points
- Burberry plans to cut almost one-fifth of its workforce to tackle a luxury slump
- Burberry reported a 117% drop in annual profits over the past financial year
- Analysts are impressed with the company's turnaround efforts and cost-cutting targets
- The London-based company's push into high fashion has not been successful
- Burberry expects the job cuts to save £100 million in two years
Burberry, the renowned British luxury brand famous for its iconic checkered pattern and stylish trench coat, has made the difficult decision to potentially lay off around 1,700 employees worldwide as part of a significant cost-cutting strategy. This news comes on the heels of Burberry revealing a staggering 117% decrease in annual profits, totaling around $87.8 million (£66 million), for the last financial year.
Despite the challenging financial results, Burberry Group PLC (LSE:BRBY) shares soared over 15% following the announcement, with investors and analysts praising the company's impressive fourth-quarter performance and ambitious cost-cutting goals. Deutsche Bank highlighted Burberry's progress in its brand revitalization, particularly in outerwear and scarves sales, although leather goods sales were weaker.
The brand's attempt to venture into high fashion under the leadership of new CEO Joshua Schulman has not gone as planned, as global luxury demand has declined. In response, Burberry has decided to reduce its workforce by nearly one-fifth in an effort to steer the company back on track.
As part of its broader restructuring strategy due to the ongoing slump in the luxury sector, Burberry is pushing forward with its plan to cut up to 1,700 jobs, citing a shift in consumer spending habits. The company's recent financial results indicated signs of improvement in the second half of the year, although it reported a loss and faced challenges from an uncertain economic climate.
Amid the sales decline, Burberry has unveiled various organizational changes aimed at driving the turnaround efforts within the struggling luxury brand. The company anticipates that these measures could result in a reduction of approximately 1,700 jobs globally over the program's duration, concluding in 2027.
Despite the turbulent times Burberry has faced, the brand surprised many by exceeding expectations with its fourth-quarter sales and adjusted operating profit for the full year. Burberry expressed optimism as it noted that brand sentiment was on the rise, indicating a potential shift in the right direction for the iconic British label.
For more information:
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