// Mulberry plans to cut 350 jobs or around 25% of its global workforce
// The plans come as it forecast slow recovery as its stores around world gradually exit lockdowns
Mulberry has unveiled plans to axe around 350 jobs across its global workforce as the luxury retailer endures ongoing uncertainty amid the coronavirus pandemic.
The firm, which employs 1400 people in total, has launched a consultation process on its proposals to make around 25 per cent of its workforce redundant.
While Mulberry has already reopened some stores in China, South Korea, mainland Europe and Canada and will begin a phased re-opening of its UK stores from next week, it still expects the recovery of sales over the medium term to be gradual.
It also said strict social distancing measures and reduced tourist and footfall levels would impact its revenue.
”We reacted swiftly to manage the impact of Covid-19 and continue to execute a well-developed plan to manage capital, reduce costs and maintain a robust liquidity position,” Mulberry chief executive Thierry Andretta said.
”In spite of the good performance of our sector leading digital and omni-channel platform, and our global network of digital concessions, the shutting of all our physical stores has had, and will continue to have, a marked effect on our business.
“Launching a consultation process has been an incredibly difficult decision for us to make but it is necessary for us to respond to these challenging market conditions, protect the maximum number of jobs possible and safeguard the future of the business.
“We remain confident in the strength of the Mulberry brand and our strategy over the long-term.”
Mulberry said it has net cash and its borrowing facilities remain undrawn.
In March, it forecast a small loss in its second half, although the details will not be be known until its full year results are published in August.