Burberry Set to Cut Hundreds of Jobs Amidst Financial RestructuringBurberry Set to Cut Hundreds of Jobs Amidst Financial Restructuring Leading luxury brand Burberry is poised to lay off hundreds of employees as part of a cost-cutting initiative. The company recently informed staff via a Zoom meeting that affected individuals would either be terminated or required to reapply for their positions. A 45-day consultation process has been initiated, which could result in significant job reductions, primarily within Burberry’s UK offices. While the company declined to disclose the exact number of affected employees, concerns suggest that up to 400 jobs may be at risk. Burberry’s financial performance has taken a hit since the start of the year, leading to a sharp decline in its stock market value. In May, CEO Jonathan Akeroyd forfeited his annual bonus due to the company’s underperformance. For the year ending March 30, Burberry’s pre-tax profit plummeted from £634m to £383m, while revenue declined from £3.094bn to £2.968bn. Despite these setbacks, Akeroyd expressed confidence in the company’s restructuring plan, highlighting progress in refocusing its brand, enhancing product development, optimizing distribution, and implementing operational improvements.
FASHION RETAIL NEWS UK
July 8, 2024 | by Angela Beevers
Luxury brand Burberry is expected to cut hundreds of jobs as part of a cost-cutting measure.
According to The Telegraph, employees were informed of the news during a Zoom meeting in late June. The affected employees were told they could either be fired or would have to reapply for their roles.
Burberry has already launched a 45-day consultation, which could mean hundreds of job cuts. The job losses are expected to come largely from the company’s UK offices.
The Telegraph reported that Burberry refused to say how many workers would be affected, although workers fear as many as 400 jobs could be at risk. Union officials are reportedly coordinating redundancy packages with some workers.
Since the start of the year, Burberry’s stock market value has fallen sharply as the company works to implement a restructuring plan.
In May, the company announced that CEO Jonathan Akeroyd would not receive a bonus for the latest financial year, as the luxury brand underperformed expectations.
For the 52 weeks to March 30, pre-tax profit fell to £383m from £634m a year earlier, while revenue fell to £2.968bn from £3.094bn.
Akeroyd said at the time: “Executing our plan against a backdrop of declining luxury demand has been challenging. While our FY24 financial results fell short of our original expectations, we have made good progress in refocusing our brand, developing our product and strengthening distribution, while implementing operational improvements.”
