Too costly to keep up? Luxury brand Burberry may shed 1700 employees in major cost cutting drive

Luxury brand Burberry has warned it employees that it may shed 1700 jobs globally by 2027. The move is part of the brand’s effort to cost cut in order to turn around the business.

The company, which hired former Coach and Jimmy Choo chief executive Joshua Schulman last July to revive its fortunes, disclosed the plan as part of a push to generate an additional 79 mn USD of savings by 2027.

It came as Burberry reported a 17 per cent fall in revenue to £2.5bn for the 12 months to March 29. It made an operating loss of 49 million USD compared with a 557.2159 USD profit the year before.

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While the company’s cost cutting drive may help the company’s business, it will affect the brand’s major workforce and reduce it to one fifth.

The company said the “organisational changes” were meant to ensure Burberry was “fit for the future”.

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