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Burberry has warned it could cut up to 1,700 roles globally as part of a new cost-cutting drive, after the group fell to a £3m loss in its full-year results, down from a profit of £418m the prior year.
In the year ended 29 March 2025, revenues plummeted 17% to £2.46bn, down from £2.97bn in FY24, as the luxury brand dealt with a “difficult macroeconomic backdrop” and a global slowdown in luxury goods purchasing.
It comes as Burberry outlined plans to generate £60m of additional savings by FY27, which includes a “reduction in people-related costs which could impact around 1,700 roles globally over the life of the programme”.
According to The Guardian, the majority of cuts will come from the group’s head offices, though some jobs may also go by reorganising staff rotas in stores and dropping a shift at its factory in Castleford.
CEO Joshua Schulman told the paper that the change in Castleford, which is expected to affect around 150 jobs, came ahead of a “significant investment” in the second half of this year in the factory.
Overall, the proposed savings will be incremental to a previously announced £40m costsavings programme, bringing combined annualised savings to £100m by FY27, Burberry said.
The launch of the plan, entitled ‘Burberry Forward’, followed a “challenging first half” for the group.
As part of the plan, the group initiated a rebalancing of product offer in the second half of the year, targeting “fewer, bigger ideas”, and “aligning pricing with category authority in a luxury context”. The group also worked to address inventory overhang and “enhance visual merchandising”.
Burberry said its “immediate intervention” resulted in a “significant improvement” in comparable retail sales in the second half of the year, relative to the first half.
Schulman said: “After a challenging first half, we have moved at pace to implement Burberry Forward, our strategic plan to reignite brand desire, improve our performance and drive long-term value creation.
“Our customers are responding to our Timeless British Luxury brand expression. With improvement in brand sentiment, we will be ramping up the frequency and reach of our campaigns as our Autumn and Winter collections arrive in store.”
He added: “The continued resilience of our outerwear and scarf categories reaffirms my belief that we have the most opportunity where we have the most authenticity.
“While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry’s best days are ahead and that we will deliver sustainable profitable growth over time.”
