Burberry: share price and stock news as iconic fashion brand announces plans for 1,700 job cuts - results

• Iconic fashion brand Burberry plans to cut up to 1,700 jobs globally
• Job cuts will mainly affect office roles in London and Leeds, plus manufacturing jobs in Yorkshire
• Burberry aims to save £100 million annually by 2027, doubling its previous savings target
• The company reported a £3 million loss for the past year, down from a £418 million profit the year before
• Falling demand in Asia, especially China, is dragging on sales

An iconic British fashion house is preparing to cut up to 1,700 jobs globally as it ramps up efforts to stem losses and restore its luxury brand to profitability.

The job cuts form part of a wider cost-cutting drive at Burberry, with the company announcing plans to double its savings target to £100 million a year by the 2027 financial year.

A significant portion of those savings will come from “people-related costs,” according to the company, which will be rolled out over a two-year period.

The announcement comes after Burberry reported a pre-tax loss of £3 million for the year ending March 29, a big drop from the £418 million profit it made the year before.

But when one-off costs are taken out, the company still made an adjusted profit of £26 million — more than double the £11 million some experts had predicted.

Burberry’s performance has been weighed down by weakening demand in China, one of its largest and most critical markets. Sales at stores open for at least a year fell by 12% compared to the previous year, mainly due to a 16% drop in sales across Asia.

Chief executive Joshua Schulman told investors: “While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry’s best days are ahead and that we will deliver sustainable profitable growth over time.”

The company first launched a £40 million cost-cutting programme in November 2024 after slipping into the red. Wednesday’s (May 14) announcement adds another £60 million in targeted savings.

But there are signs that Burberry’s strategy may be beginning to gain traction. Sales improved in the second half of the year compared to the first, and the brand’s classic outerwear pieces, including trench coats and scarves, continued to perform strongly, outpacing other product categories.

Join our NationalWorld Today newsletter - essential morning headlines in your email.

Which jobs are being cut?

The majority of the Burberry job reductions are expected to come from head office roles, particularly in London and Leeds.

About 150 positions will also be affected at the Castleford manufacturing site in Yorkshire due to the elimination of the night shift.

While Burberry has not announced any store closures, the company has indicated that some savings will come from restructuring store staff rotas.

This suggests that, although the primary focus is on office-based roles, some shop floor positions may also be impacted.

Will Burberry shops close?

At the time of writing, Burberry has not provided specific details about potential store closures in the UK.

But given the scale of the job cuts and the emphasis on cost savings, it's possible that store operations could be affected in the future.

Again, it’s important to note that, at this time, no definitive information has been made available by Burberry regarding potential store closures.

How are Burberry shares performing today?

As of May 14, 2025, Burberry Group plc's (LON: BRBY) share price is trading at approximately 900.6 pence, marking an 8.9% increase from the previous close of 826.8 pence.

Despite this recent gain, the stock remains significantly below its 52-week high of 1,254.5 pence and has experienced notable volatility over the past year.

For the most current share price and detailed financial information, you can visit Burberry's stock page on the London Stock Exchange.

Are you job-hunting? To view thousands of roles available right now, visit the JobsToday website.