Burberry has announced the relocation of hundreds of staff from its main office in London, jeopardising several jobs.
The luxury fashion retailer has told 300 London-based staff that they have the chance to relocate to Leeds, or face potential redundancy.
The cost-saving move is aimed at reducing office space in an increasingly expensive London by opening a new business centre in Leeds.
The measures are part of a plan to produce £100 million in cost savings by 2019.
“This is an important move for Burberry as we continue to deliver on the strategic priorities we outlined last year,” Burberry chief executive Chris Bailey said.
“In addition to the benefits it will bring to the business, opening an office in Leeds reinforces our commitment to the UK and to Yorkshire, home of our iconic trench coat.”
Meanwhile, Burberry is understood to be planning to vacate one of its two premises in London Victoria to further cut costs.
Despite its “commitment” to Yorkshire, the retailer has also put the brakes on plans to build a flagship manufacturing facility in Leeds, saying it needed “a moment to think through” it.
This comes amid a widespread turnaround plan for the luxury brand, which will see Bailey relinquish his role as chief executive to become president and chief creative officer.