Burberry Plans to Cut 1,700 Jobs in Turnaround Effort
In an effort to bounce back from fiscal year 2025 losses, luxury fashion brand Burberry is considering cutting up to 1,700 jobs, which would account for about 20% of its workforce. The plan, announced by CEO Josh Schulman and CFO Kate Ferry, has already had a positive impact on the company’s stock, with shares rising 16% on the London Stock Exchange.
The proposed job cuts are part of a larger turnaround plan that began with Schulman’s appointment as CEO in 2024. On Wednesday, Burberry presented a cost savings plan aimed at achieving a gain of 100 million pounds by fiscal 2027. This comes after the company reported an operating loss of 3 million pounds in fiscal year 2025, according to a report from WWD.
The news of the job cuts, along with a targeted focus on Burberry’s signature trenches and check scarves, has boosted investor confidence in the brand. Despite a 17% drop in revenue and a 12% drop in retail sales, Schulman remains optimistic, citing a better-than-expected start to Q1 of 2025 as a sign of progress.
This latest strategy follows a previous cost savings plan of 40 million pounds, announced in November. The continued positivity from Burberry suggests that investors are responding well to the brand’s efforts to turn things around. It has been a challenging few years for Burberry, with underwhelming reactions to its rebranding under Riccardo Tisci in 2018. After Tisci’s departure in 2022, the brand underwent another identity shift in 2023 when Daniel Lee joined, focusing on a more traditional marketing approach rather than Tisci’s contemporary direction.
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