Luxury fashion house, Burberry is gearing to cut about 1,700 jobs globally as part of a sweeping cost-reduction initiative set to be completed by 2027. The move comes in the wake of the company reporting a financial loss of £66 million for the previous fiscal year, signalling growing pressures on the British heritage brand.
The job cuts, which represent nearly 20 per cent of Burberry’s worldwide workforce, are expected to impact both corporate and manufacturing operations. A significant portion of the redundancies will occur at the company’s head office locations, with a heavy concentration in the UK, where Burberry employs the majority of its staff.
As part of the proposed restructuring, changes will also be implemented at Burberry’s Castleford factory in West Yorkshire. This site is known for producing the brand’s iconic trench coats, which can cost between £1,000 and £10,000. The company plans to eliminate night shifts at the facility, citing prolonged overcapacity issues that have become financially unsustainable.
Despite the looming layoffs, Burberry has stated that the restructuring efforts aim to protect and sustain its UK manufacturing base. As part of this commitment, the firm intends to invest in upgrading the Castleford factory in the latter half of the financial year.
The announcement shows the challenges being faced by high-end fashion labels navigating shifting consumer demand, rising operational costs, and changing market dynamics. Burberry’s cost-saving plan is designed to streamline operations, preserve key manufacturing capabilities, and restore profitability over the next two years.
