Burberry Warns 1,700 Jobs at Risk After Annual Loss

British luxury fashion label Burberry has announced that it could shed up to 1,700 jobs worldwide to reduce costs after falling into an annual net loss. The company reported a net loss of £75 million ($99.8 million) in the 12 months to the end of March, compared to a profit of £270 million one year earlier.

According to CEO Joshua Schulman, Burberry is in the early stages of a turnaround plan aimed at boosting sales and cutting costs amid a struggling global luxury sector. Despite the loss, the company narrowly avoided a loss for its 2025 financial year with an adjusted operating profit of £26 million ($34.55 million), beating analysts’ estimates of £11 million.

“We are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, but I am more optimistic than ever that Burberry’s best days are ahead,” Schulman said, adding that the company will ramp up its marketing campaigns as its Autumn and Winter collections arrive in stores. “With improvement in brand sentiment, we will be ramping up the frequency and reach of our campaigns.”

Burberry’s fourth-quarter comparable sales were down 6%, better than analysts’ average forecast for a 7% decline. Sales in the Americas and Europe, Middle East, India, and Africa regions both declined by 4% compared with last year, while sales in Asia Pacific were down 9%. The company is targeting an additional £60 million in cost savings by 2027, which would impact around 18% of its workforce.

The company’s stock prices reflect the challenges it faces, with its current price at £904.40 in the UK market. Despite the challenges, Schulman remains optimistic about Burberry’s future prospects.

Burberry’s cost-cutting measures include reducing its workforce by approximately 18%, which translates to around 1,700 jobs globally. This move aims to achieve £100 million in annual savings by 2027, exceeding the initially targeted £60 million in cost savings.

CEO Joshua Schulman is steering the company towards a turnaround strategy, focusing on core products like trench coats and scarves, while navigating economic uncertainties and declining sales in key regions. Despite the challenges, Schulman remains optimistic about Burberry’s future prospects, citing improved brand sentiment and increased marketing efforts.