Burberry, the British luxury brand, announced on May 14, 2025, plans to cut approximately 1,700 jobs, nearly 20% of its global workforce, by 2027 as part of a cost-cutting and brand reset strategy, following a steep profit decline.
As reported by Reuters, the cuts, targeting corporate roles and the night shift at its Castleford factory in Yorkshire, come after a fiscal year ending March 29, 2025, with an adjusted operating profit of £26 million, down from £634 million in 2023, and a £66 million pre-tax loss.
British luxury brand Burberry said it would cut 1,700 jobs globally as it tries to cut costs and turn the business around, while adjusted operating profit for its full year ending March 29 beat expectations. More here: https://t.co/Pg0jeWjXuY
— Reuters Business (@ReutersBiz) May 14, 2025The layoffs will primarily affect global office roles, with 150 jobs impacted at Castleford, where overcapacity prompted the night shift’s elimination, per CEO Joshua Schulman. Burberry is refocusing on heritage staples like trench coats and scarves, expanding a £40 million savings plan to £60 million. Shares rose 8% in London trading, reflecting investor optimism despite a 15% full-year revenue drop and regional sales declines (4% in Americas/EMEIA, 9% in Asia-Pacific).
Burberry’s Financial Challenges
Burberry’s £26 million profit beat analyst expectations of £11 million, but the £66 million loss, compared to a £383 million profit in 2023, underscored underperformance, per Bloomberg. Fourth-quarter sales fell 6%, better than the anticipated 7% drop. Schulman, who joined in 2023, cited “years of underperformance” against luxury rivals, noting U.S. consumer sentiment weakened in Q4, contributing 19% of business.
❌ Burberry to axe 1,700 jobs as it sinks to £66m losshttps://t.co/T4FKod8pmz
— The Telegraph (@Telegraph) May 14, 2025Schulman, the fourth CEO in a decade, is steering Burberry back to its roots after high-end luxury shifts under Marco Gobbetti and Jonathan Akeroyd faltered. Designer Daniel Lee’s focus on leather accessories is being scaled back, with Schulman emphasising cost efficiency and brand heritage. Burberry declined to provide 2026 guidance, citing geopolitical uncertainties, including U.S. tariffs, as reported by The Financial Times.
The job cuts and reset reflect broader luxury market challenges, with Burberry navigating consumer shifts and economic uncertainty. The Castleford decision aims to safeguard UK manufacturing, but layoffs risk reputational fallout. Burberry’s pivot to heritage products could strengthen its identity, but success hinges on execution, with analysts watching for 2026 recovery signs amid global competition.
