Burberry Looks To Cut 18% of Its Global Workforce as Part of Turnaround Effort

Iconic fashion brand Burberry is set to slash nearly one-fifth (18%) of its workforce by 2027 as part of its planned turnaround effort, according to CNN Business. Those cuts will involve around 1,700 “at-risk” positions, involving potential layoffs at its Castleford factory in West Yorkshire, U.K., as the BBC outlined.

“Today, we are announcing organisational changes aimed at enhancing collaboration across our business, increasing our agility, driving efficiency and profitability while protecting our investment in consumer-facing areas,” Burberry noted in a May 14 press release, gesturing toward $80 million in savings recouped by fiscal year 2027, in addition to a previous $53 million cost-savings program announcement, due to this latest reorganization strategy.

“We expect these proposed incremental savings to come from operating expenses, with increased efficiency of spend in procurement and real estate, and a reduction in people-related costs which could impact around 1,700 roles globally over the life of the programme, subject to consultation where applicable,” the press release continued.

Burberry Signals Cuts Centered on, but Not Limited to, UK Workers

The BBC quoted Burberry CEO Joshua Schulman as indicating that while the cuts would “naturally” be focused in the United Kingdom, where the majority of the fashion label’s workers reside, staff in other nations would likely be affected as well.

Furthermore, Schulman pointed to a restructuring of staff schedules, including the complete removal of the night shift at its Castleford factory, where the company manufactures many of its well-known trench coats.

“For a long time we have had overcapacity at that facility, and that is simply not sustainable,” Schulman said.

“But I want to be very clear that we are making this change to safeguard our U.K. manufacturing, and in fact we will be making a significant investment to renovate this factory in the second half,” he added.

Staff at Burberry retail locations could see schedules aligned with peak business hours to maximize efficiency further.

Burberry Stock Trends Upward Over News of Cost Cuts, but Tariff Concerns Remain

CNN reported that Burberry’s stock jumped by more than 9% during early morning trading on May 14; by 1:24 p.m. ET, that figure had increased to a nearly 17% improvement.

The company cited “current macroeconomic environment has become more uncertain in light of geopolitical developments,” which could reference President Donald Trump’s wide-ranging tariffs imposed earlier this year as one reason for caution, as Burberry returns attention to its flagship outerwear products — coats and scarves — to rekindle waning consumer interest.

Schulman said the pivot back to “Britishness” and its flagship products was working, as Reuters reported, during an investor presentation.

“The customers we want to grow, who have been declining for three years, are now excited about what they see,” the CEO said.