Mulberry Cuts 85 Jobs Amid Revenue Decline

Luxury handbag maker Mulberry has announced a significant restructuring plan after reporting a 19% decline in group revenues, dropping to £56.1 million for the six months ending September 28. Newly appointed CEO Andrea Baldo revealed the company is cutting 85 jobs, approximately 25% of its head office staff, to streamline operations in response to challenging market conditions and declining consumer confidence. The layoffs predominantly affect the London design headquarters and some office workers in Somerset, while production staff will remain unaffected. The company's pre-tax losses widened to £15.7 million, attributed to a 46% drop in wholesale revenues and a 31% decline in Asia Pacific sales. Baldo emphasized the need for a refreshed business strategy and plans to focus on affordable luxury, aiming for a return to growth, particularly in the UK market. Mulberry's challenges have been compounded by external factors such as inflation and reduced luxury spending globally.