Burberry Cuts 1,700 Jobs Globally in Cost-Cutting Drive

Burberry is undertaking a major restructuring plan to address a steep sales decline and financial challenges, aiming to save £100 million by 2027 through cutting 1,700 jobs, nearly 18-20% of its global workforce, and optimizing costs. Under CEO Joshua Schulman, who joined in 2024, the brand is focusing on revitalizing its core British heritage products such as trench coats, scarves, and parkas, while enhancing marketing efforts and improving production efficiency, including changes at its Castleford factory. Despite these challenges, Burberry's operating profit exceeded expectations, reaching £26 million against an estimated £11 million, and the company’s shares surged by 18% after the turnaround announcement, reflecting investor optimism. The fashion house faces broader industry headwinds, including a global luxury slowdown and supply chain issues, particularly in the U.S. market, but Schulman remains confident in navigating these through strategic adjustments and cost-cutting initiatives. The company's recent fashion show has bolstered retailer orders, signaling potential momentum in its revival strategy. Burberry's transformation seeks to reaffirm its identity and competitiveness in British luxury amid a turbulent retail environment and recent leadership changes.