CEO Joshua Schulman doubles down on trench coats, pricing shifts, and £100M in savings to revive sales.
Burberry is undertaking a significant restructuring plan, announcing the elimination of approximately 1,700 jobs—about 18% of its global workforce—in an effort to address declining sales and restore profitability.This move is part of CEO Joshua Schulman’s “Burberry Forward” strategy, which aims to refocus the brand on its heritage products, such as trench coats and scarves, while implementing cost-saving measures.
The company reported a substantial drop in financial performance, with an operating loss of £3 million for the fiscal year ending March 29, 2025, compared to a £418 million profit the previous year.Revenues fell 17% to £2.5 billion, and store sales declined by 12%.Despite these challenges, Burberry’s shares rose by 6.9% following the announcement, reflecting investor optimism about the turnaround plan.
The job cuts will primarily affect office roles, retail staff, and manufacturing positions, including the elimination of a night shift at the Castleford factory in the UK.The company aims to achieve £100 million in annual savings by 2027 through these reductions and other cost-saving initiatives.
Schulman’s strategy includes reaffirming Burberry’s identity as a timeless British luxury brand, leaning into outerwear and scarves, and revising pricing strategies.The company also plans to implement stricter inventory control and align staffing with peak store traffic.
While the brand faces challenges, including weakened performance in key markets like China and the U.S., Schulman remains optimistic about achieving sustainable, profitable growth through disciplined cost control and brand recalibration efforts