Burberry, the luxury fashion firm known for its iconic camel, red, and black check pattern, has announced plans to cut around 1,700 jobs in order to reduce costs by 2027. This decision comes after the company reported a £66m loss in the last financial year. The proposed job cuts would result in nearly a fifth reduction of Burberry’s global workforce and could potentially lead to redundancies at its Castleford factory in West Yorkshire.
CEO Joshua Schulman stated that the majority of job losses would mainly affect head office teams worldwide, with a focus on the UK where most of the staff are based. Staff rotas will be reorganized, and night shifts at the Castleford factory will be eliminated. Schulman emphasized that these changes aim to safeguard UK manufacturing, and the company plans to invest significantly to renovate the factory in the near future.
Burberry also intends to align schedules with peak store traffic in its shops, which could lead to further job reductions. The company expects to achieve savings by optimizing operating expenses and increasing efficiency in procurement and real estate. These cost-cutting measures are part of Burberry’s broader goal to create annualized savings of £100m by Spring 2027.
Investment director Russ Mould commented on Burberry’s plans, describing them as “pretty radical steps” in the company’s recovery efforts. The decision to reduce headcount reflects a strategic shift towards Burberry’s historic strengths in classic outerwear products like trench coats and scarves. Former CEO Jonathan Akeroyd’s unsuccessful attempt to position Burberry more upmarket led to plunging sales, prompting the need for decisive action under Schulman’s leadership to refocus on the brand’s core customers and deliver relevant newness
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