Burberry, the British fashion brand known for its trench tension and its signature checkered print, said on Wednesday that it would reduce up to 1,700 jobs in order to reduce costs while trying to return to profits after a period of bad sales in an increasingly volatile luxury sector.
The job cuts, which represent 18 percent of the company’s global workforce, are among the larger organizational changes which should allow the company to allow the company of 60 million pounds (around 80 million dollars). The measures come in the middle of the global uncertainty that increased after President Trump has imposed prices on the main American business partners.
“The current macroeconomic environment has become more uncertain in the light of geopolitical developments,” the company said in a press release.
The company announced the cost reduction strategy after reporting that it had changed to an annual loss during the 2025 financial year, which ended on March 29, from a profit the previous year. Operating losses were 3 million pounds sterling, or $ 4 million, compared to 418 million pounds sterling, or $ 558 million, benefiting the previous year. Revenues fell 17% to 2.5 billion pounds sterling, or $ 3.4 billion.
Burberry has experienced difficulties in recent years after changes in management and designer, a desire to increase prices that fell flat with customers and the global slowdown in luxury consumption, especially in China, its largest market abroad.
The company has said that cost reduction efforts, combined with previous measures, could lead to saved savings up to 100 million pounds, or $ 133 million, by 2027. Most job losses will reach business offices but could also affect retail stores and factories.
Actions have jumped up to 10% on news after opening the market in London.
The director general of the company, Joshua Shulman, joined Burberry from his American rival, coach last year to lead a recovery effort. He said in a statement on Wednesday that he was “more optimistic than ever than Burberry’s best days were ahead and that we will offer lasting profitable growth over time”, but added that the last exercise had been difficult.
Charlie Huggins, director of the investment company Wealth Club, noted that a 6% drop in sales at stores comparable to the fourth quarter was “a marked improvement” and suggested that “the strategic plan to rekindle the brand could gain an early traction”.
“But the 2025 exercise was still a horrible year for Burberry,” he said. “Almost everything that could go wrong.
The other groups that have noted the drops of income recently include LVMH, owner of Louis Vuitton and Dior, and Kering, who owns brands like Gucci and Saint Laurent.
