Iconic fashion brand Burberry is planning to cut nearly one-fifth of its workforce by 2027, involving around 1,700 positions, as part of a reorganization strategy to enhance collaboration, agility, and profitability.
Sales at Burberry fell 6% in the fourth quarter, slightly less than the anticipated 7% decline.
Burberry previously reported a 4% increase in U.S. sales in the third quarter despite weakness in other regions.
The company aims to recoup $80 million in savings by fiscal year 2027 through increased efficiency in operating expenses and a reduction in people-related costs.
Burberry CEO Joshua Schulman indicated that the majority of the cuts would be focused in the U.K., with a restructuring of staff schedules and a significant investment in renovating its Castleford factory.
The company’s stock saw a significant increase following the announcement, as Burberry returns its focus to its flagship outerwear products to rekindle consumer interest.
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