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Burberry to Cut 20% of Workforce in Loss Turnaround Plan
As part of a turnaround plan that began with the appointment of CEO Josh Schulman in 2024, Burberry may cut as many as 1,700 jobs, translating to about 20% of its workforce. On Wednesday, Burberry presented a cost savings plan aimed at a gain of 100 million pounds by fiscal 2027. The efforts were outlined as the company posted an operating loss of 3 million pounds in fiscal year 2024, per a report from WWD.The plan outlined by Schulman and Burberry CFO Kate Ferry gave the company's stock a boost with shares up 16% to 9.61 pounds on the London Stock Exchange. Though the brand experienced a 17% drop in revenue and a 12% drop in retail sales, Schulman emphasizes that a better-than-anticipated start to Q1 of 2025 shows some progress.In addition to a targeted push of Burberry's core trenches and check scarves, the brand will begin cutting jobs at its English manufacturing facilities and some office roles, totalling up to 1,700. Given that the new strategy comes after the company's November presentation of a 40 million pound savings plan, the continued positivity from Burberry seems to have lifted investor sentiments.It's been years since Burberry's performance began waning, largely due to the flat reaction to its rebranding under Riccardo Tisci in 2018. Following his departure in 2022, Burberry's brand identity was rehauled yet again in 2023 when Daniel Lee joined, focusing on a heritage-oriented marketing strategy, in place of Tisci's more contemporary creative direction.Stay tuned to Hypebeast for the latest fashion industry news.Click here to view full gallery at Hypebeast
As part of a turnaround plan that began with the appointment of CEO Josh Schulman in 2024, Burberry may cut as many as 1,700 jobs, translating to about 20% of its workforce. On Wednesday, Burberry presented a cost savings plan aimed at a gain of 100 million pounds by fiscal 2027. The efforts were outlined as the company posted an operating loss of 3 million pounds in fiscal year 2024, per a report from WWD.
The plan outlined by Schulman and Burberry CFO Kate Ferry gave the company's stock a boost with shares up 16% to 9.61 pounds on the London Stock Exchange. Though the brand experienced a 17% drop in revenue and a 12% drop in retail sales, Schulman emphasizes that a better-than-anticipated start to Q1 of 2025 shows some progress.
In addition to a targeted push of Burberry's core trenches and check scarves, the brand will begin cutting jobs at its English manufacturing facilities and some office roles, totalling up to 1,700. Given that the new strategy comes after the company's November presentation of a 40 million pound savings plan, the continued positivity from Burberry seems to have lifted investor sentiments.
It's been years since Burberry's performance began waning, largely due to the flat reaction to its rebranding under Riccardo Tisci in 2018. Following his departure in 2022, Burberry's brand identity was rehauled yet again in 2023 when Daniel Lee joined, focusing on a heritage-oriented marketing strategy, in place of Tisci's more contemporary creative direction.
Stay tuned to Hypebeast for the latest fashion industry news.
Click here to view full gallery at Hypebeast
