Burberry to axe 1,700 jobs to return the fashion brand back to profit

Burberry has announced they are to axe 1,700 jobs globally to return the fashion brand back to profit, and the there will be job losses at the Castleford factory in West Yorkshire.

The proposal will see 20% of the global workforce and Burberry has set a £100 million cost cutting target per year by 2027.

Burberry’s chief executive Joshua Schulman said, “For a long time we have had overcapacity at that facility, and that is simply not sustainable.

“But I want to be very clear that we are making this change to safeguard our UK manufacturing, and in fact we will be making a significant investment to renovate this factory in the second half.

“Our intention is that we make our British heritage raincoats in the UK for many generations for come.”

Schulman told investors, “While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry’s best days are ahead and that we will deliver sustainable profitable growth over time.”