Burberry gears up to axe hundreds of jobs in cost-cutting drive

Designer label Burberry is prepping to axe hundreds of jobs after failing to turn around the company’s falling profits.

According to the Telegraph, redundancies are being lined up as part of a radical cost-cutting programme.

Employees were notified of the restructuring in late June via a Zoom meeting, in which workers were told they faced redundancy or having to reapply for their roles.

A 45-day consultation is currently underway.

It comes after shares in Burberry, famous for its signature beige check pattern, fell over 36 per cent in 2024, making it one of the worst performers on the FTSE 100.

Union officials are reportedly working on redundancy settlements with a certain group of employees. The firm has yet to confirm how many workers would be affected.

The company refused to say how many workers will be affected, but employees fear up to 400 jobs could be at risk.

The British fashion house in May reported a more than third decline in full-year operating profit, caused in part by consumers reducing spend on luxury goods.

Revenue also fell around four per cent to £2.8bn.

Burberry, which has its headquarters in Westminster in London, employs nearly 10,000 people globally.

In 2020, the firm proposed axing 500 jobs as it looked to save money during the Covid-19 pandemic. Shares are down over 50 per cent since 2019.

Burberry has been approached for comment.