Burberry to Cut 1,700 Jobs as Turnaround Efforts Continue, Shares Jump

Burberry (LON: BRBY) anticipates it will cut up to 1,700 jobs globally as part of a cost-saving programme, the British luxury brand said Wednesday, while reporting better-than-expected sales for the fourth quarter.

Following the company’s FY25 results, Burberry shares have jumped by around 9%.

Retail comparable sales fell 6% in the three months to March. For the full fiscal year, group comparable store sales declined 12%, slightly ahead of the anticipated 13% fall. 

Total annual revenue was £2.461 billion, narrowly topping forecasts of £2.451 billion.

The company posted a reported operating loss of £3 million for the year, compared to a £418 million profit last year. Adjusted operating profit plummeted 94% to £26 million. 

Despite the challenging results, Burberry reported a free cash inflow of £65 million.

Burberry launched its “Burberry Forward” strategy in November to reset brand identity and improve performance. The company said the company saw “significant improvement in brand sentiment” and reaffirmed its focus on core categories like outerwear and scarves.

The company said the planned changes aim to deliver £100 million in annual savings by fiscal year 2027. One-off costs related to the changes are expected to total £80 million.

However, they added that they expect “a reduction in people-related costs which could impact around 1,700 roles globally.”

“The continued resilience of our outerwear and scarf categories reaffirms my belief that we have the most opportunity where we have the most authenticity,” said CEO Joshua Schulman. “While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround.”