British luxury fashion house Burberry has announced sweeping job cuts affecting nearly 20% of its global workforce as part of a major cost – cutting initiative. The 168 – year-old brand, famous for its iconic trench coats and check patterns, revealed plans to eliminate approximately 1,700 positions following a £66 million annual loss.
The restructuring will primarily impact corporate staff at Burberry’s worldwide headquarters, with significant changes coming to its historic Castleford factory in West Yorkshire. The facility, which has produced the brand’s premium raincoats since 1972, will see night shifts discontinued as part of operational streamlining. Despite these cuts, Burberry promises substantial investment to modernize the Yorkshire factory later this year.
New CEO Joshua Schulman, who took leadership last July, is steering the company back to its heritage roots after failed attempts to move further upmarket under previous management. The strategy shift focuses on core products like outerwear and scarves while implementing £100 million in total annual savings by early 2027 through workforce reductions, procurement efficiencies, and real estate optimizations.
Industry analysts view these “radical steps” as necessary for Burberry’s turnaround, particularly as the luxury sector faces weakening demand in key markets like China and the Americas. The job cuts come alongside broader challenges in the global luxury goods market, with Burberry joining other high – end brands in adjusting to changing consumer spending patterns.
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