Luxury fashion brand Burberry is gearing up to slash hundreds of jobs under a cost-cutting programme as its profits plunge.
The retailer has lost over a third of its stock market value since the start of the year and is at risk of being booted off the FTSE 100, according to The Telegraph.
The restructuring plans were announced to staff members in a Zoom meeting during late June, as impacted employees were informed they were either facing redundancy or needed to reapply for their positions.
Burberry has commenced a 45-day consultation, indicating that hundreds of jobs could be axed. The job losses are expected to mainly impact the brand’s UK offices.
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It is believed that union officials are currently co-ordinating redundancy settlements with a select group of workers.
While the fashion house has not confirmed how many staff members will be affected, workers believe up to 400 roles could be scrapped under the plans.
The news comes as Burberry has struggled to deliver a turnaround, with its full-year profits recently dropping 36% to £418m as it grappled with a challenging economic environment.
Sales dipped 4% over the year, as chief executive Jonathan Akeroyd admitted that “executing our plan against a backdrop of slowing luxury demand has been challenging”.
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