Luxury fashion giant Burberry has announced plans to cut up to 1,700 jobs worldwide as part of a major cost-saving strategy, with the Burberry job cuts primarily targeting head office roles and UK-based staff. The move comes after the British designer brand posted a £66 million loss in the last financial year and aims to achieve £100 million in annual savings by spring 2027.
The company, known for its signature trench coats and iconic check pattern, stated that most of the redundancies will affect its global head office teams, including possible layoffs at its Castleford factory in West Yorkshire, where its high-end coats are produced.
Castleford Factory to Lose Night Shifts, Despite Planned Investment
Burberry CEO Joshua Schulman confirmed that night shifts at the Castleford factory will be scrapped due to longstanding overcapacity. However, he stressed that the decision is intended to protect UK manufacturing in the long term. “We will be making a significant investment to renovate this factory in the second half of the year,” he said.
Castleford has produced Burberry’s trench coats—ranging in price from £1,000 to £10,000—since 1972. The restructuring will also see staff rotas adjusted and job roles aligned with peak store traffic to maximise retail efficiency.
Luxury Retail Faces Tough Market Conditions
The job cuts are part of a wider effort to reduce operational expenses, increase procurement efficiency, and optimise real estate usage. The latest announcement builds on a previous £40 million cost-saving initiative launched in November, bringing total planned savings to £100 million by 2027.
Burberry’s financial challenges are tied to global economic pressures and a slowdown in luxury spending, particularly in China and the Americas. Former CEO Jonathan Akeroyd’s attempt to push Burberry further upmarket failed to reverse declining sales, prompting a shift back to its traditional strengths.
Return to Core Products and Brand Identity
Current CEO Joshua Schulman, who took over in July 2023, is redirecting the brand’s focus toward its heritage categories such as trench coats and scarves. “The continued resilience of our outerwear and scarf categories reaffirms my belief that we have the most opportunity where we have the most authenticity,” Schulman said.
Industry analysts say the changes mark a significant but necessary turnaround strategy. Russ Mould, investment director at AJ Bell, described the move as “pretty radical” and a sign that Schulman is “pulling the classic turnaround lever of cutting costs and returning to core strengths.”
Burberry, founded in 1856, is seeking to stabilise its operations and reconnect with its loyal customer base amid stiff competition and weak demand across the luxury sector.
