In a sobering but calculated move, British fashion house Burberry has announced it will slash 1,700 jobs globally approximately 20% of its workforce after reporting a staggering £66 million loss. The sweeping layoffs are part of an urgent restructuring effort spearheaded by newly appointed CEO Joshua Schulman, as the iconic brand attempts to regain its footing in an increasingly volatile luxury fashion market.
The announcement marks a significant pivot for Burberry, long recognized for its signature trench coats and quintessential British elegance, but more recently struggling to define its place in a highly competitive, rapidly shifting global retail landscape.
The cuts will primarily affect office-based employees and operations staff, though a notable impact will be felt at Burberry’s Castleford trench coat factory in Yorkshire, England, where the company plans to eliminate the night shift due to overproduction. Castleford has long been a cornerstone of Burberry’s manufacturing heritage, adding an emotional weight to the job losses.
For Schulman, who took over in 2024, the decision was not made lightly but deemed necessary for the long-term health of the brand. “All brand metrics have shown a significant improvement in the second half compared to the first half,” he said, signaling that early signs of the turnaround strategy are beginning to show promise.
Still, these workforce reductions are a painful reminder that even storied brands must make difficult decisions when faced with financial headwinds.
Back to the Brand’s Roots
Under Schulman’s leadership, Burberry is making a distinct turn away from the high-risk, high-fashion experiments that defined the tenure of former designer Riccardo Tisci and former CEO Marco Gobbetti. Between 2017 and 2021, the duo tried to reposition Burberry as an ultra-premium luxury brand to rival the likes of Gucci and Louis Vuitton. While the vision was bold, the results were mixed. Financial performance lagged, and the brand lost some of its traditional identity in the process.
Schulman, who previously led luxury brands like Jimmy Choo and Coach, has instead opted for a “heritage-first” strategy, emphasizing Burberry’s core products its timeless trench coats and classic scarves. These items not only symbolize the essence of the brand but also command strong margins and customer loyalty.
He’s also betting big on leather accessories and designer Daniel Lee, whose edgy yet grounded aesthetic has been tasked with bridging modern relevance and historical prestige. This shift in creative and commercial direction is aimed at realigning Burberry with the values that originally made it a global name.
Financial Snapshot: Glimpses of Hope Amid Troubling Numbers
Despite the grim headline loss of £66 million, Burberry avoided falling further into the red thanks to a modest but better-than-expected adjusted operating profit of £26 million for the fiscal year ending March 29, 2025. Analysts had forecast only £11 million, giving the company a small but meaningful win in an otherwise tough period.
Yet, cracks in the armor remain. Comparable sales in the fourth quarter dipped by 6%, slightly outperforming expectations but still reflecting a downward trend. The picture becomes even murkier when broken down by region. Sales were down 4% across the Americas, Europe, the Middle East, India, and Africa. The Asia Pacific region, which has traditionally been a growth driver for the brand, experienced a sharper decline of 9%.
Schulman acknowledged these pressures, especially pointing to a shift in consumer behavior in the U.S., which currently represents 19% of Burberry’s customer base. “The US customer was maintaining their momentum as we entered Q4,” he explained, “but as we moved into February, especially in the US market, things became a little choppy.”
Despite laying off nearly one-fifth of its global staff and weathering disappointing sales, Burberry did not provide a financial forecast for the upcoming fiscal year. The company cited ongoing “geopolitical developments” and general economic uncertainty, refraining from commenting on any potential impact from tariffs or trade policy shifts especially given the tense trade environment involving the U.S. and China.
Still, there is a quiet determination emanating from Schulman and his leadership team. While the road ahead is undoubtedly steep, the steps being taken now painful as they may be signal a clear shift toward long-term sustainability.
“This is about building a brand that not only survives but thrives,” Schulman implied, as he pointed to the structural changes and brand recalibrations underway.
An Emotional Chapter in the History of Burberry
For employees and long-time supporters of Burberry, this moment is undeniably emotional. A brand rooted in British identity, craftsmanship, and tradition now finds itself grappling with modern global pressures that no amount of legacy can shield against.
The coming months will be a critical proving ground for Schulman and his team. Success will not be measured solely by profit margins but by the brand’s ability to restore its iconic status while navigating the complexities of today’s luxury market.
Burberry may be cutting jobs and facing losses, but it’s also staging a comeback, one stitched together with equal parts humility, strategy, and hope.
