Burberry's sweeping cost-saving push to see about 1,700 roles being impacted globally

The restructuring plan is expected to focus on driving greater productivity, simplification, and financial discipline.

British luxury brand Burberry has announced plans to reduce its global workforce by around 1,700 roles, close to 18% by the end of its 2027 financial year, as part of an expanded cost-saving initiative to turn the business around.

The job cuts form part of a wider restructuring effort under Burberry Forward, the company’s strategic plan to simplify operations, sharpen brand focus, and drive long-term growth. According to Burberry, these organisational changes aim to enhance agility, increase collaboration, and ensure the business is “fit for the future in a demanding and dynamic global market.”

In its latest full-year results released on 14 May 2025, Burberry reported a £3mn operating loss for the financial year ending 29 March 2025, a sharp reversal from a £418mn profit the year before. Revenue dropped 17% to £2.5bn.

According to the company, actions taken in the second half of the year have led to signs of improvement, including a £67mn profit in H2 that offset a £41mn loss in H1.

The company is targeting £100mn in total annual cost savings by FY27, an increase from the previously announced £40mn programme. Of the newly planned £60mn in savings, Burberry said these will come from improved procurement, real estate, and people-related costs., which points to the 1,700 roles that will be impacted.

According to a CNA report, most of the job reductions are expected in global corporate office roles. However, store employees and staff at the brand’s Castleford factory in the UK are also expected to be affected. Burberry plans to remove the night shift at the Castleford site, citing long-term overcapacity, also per the CNA report.

“For a long time we’ve had overcapacity at that [UK] facility and that’s simply not sustainable at this point,” said Joshua Schulman, Chief Executive Officer of Burberry, as quoted in the CNA report.

At the same time, he noted that Burberry remains committed to UK manufacturing and will invest significantly in the Castleford facility, reaffirming the company's heritage of producing outerwear, including its iconic trench coats.

Burberry Forward was launched in November 2024, following what the company called a “challenging first half.” Since then, it has focused on resetting its brand positioning around “Timeless British Luxury,” streamlining product offerings, enhancing visual merchandising in stores and online, as well as rebalancing inventory.

Key campaigns such as “It’s Always Burberry Weather” and “Wrapped in Burberry” contributed to an uptick in brand sentiment, with the company seeing resilience in categories such as outerwear and scarves.

Schulman, who took over as CEO, said the strategic reset is beginning to show results.

“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,” he stated.

Human Resources Online has reached out to Burberry for a statement but has yet to receive a response.

Lead image / Burberry