Luxury fashion house Burberry has announced plans to cut approximately 1,700 jobs worldwide—nearly 20% of its global workforce—as part of an ambitious cost-reduction strategy to be completed by 2027. The announcement follows a reported financial loss of £66 million in the last fiscal year, highlighting mounting pressures on the iconic British brand. The cuts will impact both corporate and manufacturing functions, with a significant portion concentrated in the UK, where the company employs the majority of its staff.
The restructuring will also affect Burberry’s Castleford factory in West Yorkshire, renowned for producing its signature trench coats, which retail for as much as £10,000. As part of the changes, night shifts at the facility will be eliminated due to persistent overcapacity, which the company says is no longer financially viable. However, Burberry reaffirmed its commitment to UK manufacturing, pledging investment in the Castleford site later this fiscal year to modernize and sustain its operations.
This move underscores the broader challenges luxury fashion brands face amid shifting consumer behavior, rising production costs, and volatile global markets. Burberry’s job reduction and operational revamp aim to streamline the business, protect critical capabilities, and restore profitability in the next two years.
