Burberry will reduce about 1700 jobs all over the world by 2027 – including removing the entire night attack Yorkshire Raincoat Factory – where the troubled fashion house intensifies its efforts to reduce costs after stumbling in the profits.
The British luxury brand announced the reduction of jobs on Wednesday after it reported a 117 % decrease in its annual profits before taxes in the last fiscal year. It recorded a loss of 66 million pounds, a decrease from a profit of 383 million pounds, as the company struggled against the broader distress in the global luxury goods industry.
The company said that a new plan to find 60 million pounds in costs may affect 1700 jobs. barbaric The employee is about 9,300 people all over the world last year, and therefore discounts can affect almost five employees.
Goshua Shuelman, CEO of Barbari, said that most of the discounts will be in the main offices of the group around the world, led by London, but Jobs will also go by reorganizing Rotas in stores and dropping a single seizure in its trench Factory in Custverord. He said that the store was not planned.
Violeman said that the change in Custardord, which is expected to affect about 170 high skill jobs, will happen before a “major investment” in the second half of this year in the factory.
“For a long time, we had an excessive ability in this facility, and this is simply not sustainable at this stage,” he said. “We make this change to protect our manufacture in the United Kingdom and will make a great investment in the renewal of the Victorian factory [later this financial year]”
He said that Berberry had a “ambition” to increase the size of UK’s production “over time” and saw value in “a tradition of making trench coats here in the United Kingdom.”
However, Darren Travis, the organizer of the GMB Federation, who represents the workers in the factory, said: “This is a sad and sad blow to these workers and CastleFord itself. Burberry is the largest employer in the city and more than a quarter of the workforce.” “
The fashion house, which is famous for the distinctive trench coats, has In recent years Because of the weakness of the luxury market and a series of short -term attempts to revive the brand with different designers. The company, Shawman, rented the former head of the American fashion brand coach, as CEO last year in an attempt to climb its wealth.
One of the functions that seems to be safe as part of the Shuleman Renewal is the function of creative creators, Daniel Lee, whose role was supposed to be risk under the new system.
“It cannot be happier with the progress of our team” in the transfer of Burberry from “modern British luxury to the eternal British luxury” and that the latest group was “an extraordinary expression of the immortal British luxury and we are all very excited about what will come.”
The cost reduction plan is in addition to a The savings program is 40 million pounds This was announced in November. Burberry shares jumped by 17 % on Wednesday, as the city welcomed the cost reduction plan.
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“It is more optimistic than ever that the best barbarian days in the foreground,” said Shawmanman said, although he said that the first half of the last fiscal year was a challenge.
The group’s basic sales decreased by 15 % to 2.5 billion pounds for the year until March 29, but the numbers indicated a noticeable improvement in the last quarter when sales decreased only 6 %. The company partially blamed for a decrease in the decrease in sales of Chinese tourists and removed after Britain’s exit from the European Union for VAT for tourists shopping in the United Kingdom.
Shuelman said sales in the United States have been “volatile” in recent months, with a number of climbing and landing since the Trump administration took office.
Charlie Hugins, of the Wildth Smastar Club, said that the 2025 period was “Anos’ horror” for Burberry. He said: “The luxury consumers around the world greatly stressed their concerts that hit the entire luxury sector. But Burberry has witnessed a greater impact than most of them.” “Its operational implementation has left a lot of desirable in recent years and the brand has lost its luster, which has increased the issues of the wider sector.”
It also has a broader decline in the luxury commodity sector has achieved larger competitive sales such as KERING, which has trademarks such as Gucci, Balenciaga and LVMH, which has Luis Vuitton and Christian Dior.
Burberry lost nearly a quarter of its market value during the past year, while LVMH lost about a third and KERING has declined with more than five.
