High-end fashion brand Burberry is preparing to reduce its workforce by hundreds of jobs as part of a cost-cutting initiative due to a decline in profits.
The company’s stock market value has dropped by more than a third since the beginning of the year, raising concerns that it may be removed from the FTSE 100 index, as reported by The Telegraph.
During a Zoom meeting in late June, employees were notified of the restructuring plans, with some facing potential job losses or being required to reapply for their current roles.
Burberry has initiated a 45-day consultation period, indicating that a significant number of jobs may be cut, primarily affecting its offices in the UK.
Although Burberry has not disclosed the exact number of employees affected, it is estimated that around 400 positions could be eliminated according to employees.
This development follows Burberry’s recent struggle to improve its financial performance, with a 36% decline in full-year profits to £418m and a 4% decrease in sales. CEO Jonathan Akeroyd acknowledged the difficulties of executing their strategy amidst a challenging luxury market.
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