The restructuring will also affect retail roles, with adjustments to shift patterns and staffing levels to align with peak demand periods, reflecting the brand's need to adapt to changing market conditions.

Burberry, the iconic British fashion brand, has announced plans to cut up to 1,700 jobs, which represents 18% of its global workforce, as part of a cost-cutting initiative aimed at saving approximately £60 million.

This decision follows a significant decline in the company's financial performance, reporting operating losses of £3 million for the fiscal year ending March 29, 2025, compared to profits of £418 million the previous year.

Chief Executive Joshua Schulman emphasized the necessity of these changes to ensure the sustainability of UK manufacturing, alongside a planned significant renovation investment for the Castleford facility.

Despite implementing new strategies, Burberry continues to face challenges in the U.S. market, which constitutes 19% of its business, as consumer behavior has fluctuated and remains cautious amid economic uncertainties.

The luxury sector, including Burberry, has faced a downturn, with comparable sales down 6% in the fourth quarter, indicating broader challenges in consumer spending across major brands.

As part of its revival strategy, Burberry is refocusing on its signature products, like trench coats and scarves, while also reducing prices for bags and shoes to attract more customers.

The current economic environment is increasingly uncertain due to geopolitical factors, contributing to a decline in brand appeal among aspirational consumers during the ongoing cost-of-living crisis.

However, there have been signs of improvement, particularly in the outerwear category, which has performed better than other products, prompting plans to enhance marketing campaigns featuring celebrities.

Schulman expressed optimism about the company's turnaround efforts, highlighting improved customer responses to Burberry's brand expression and a strategic focus on enhancing brand desire.

Overall, Burberry's announcement comes amid a challenging market environment for luxury brands, as the company continues its efforts to stabilize and revitalize its performance.