British luxury clothing retailer Burberry announced Monday (July 8) that it was eliminating hundreds of jobs after allegedly initiating a restructuring program in reaction to a drop in profits.
It is understood that employees were informed of the cuts earlier in June via a Zoom meeting. While it was not mentioned how many jobs would be affected, Forbes estimated that up to 400 roles would be at risk.
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Job Cuts Due to Plummeting Profits
The Telegraph reported that the company had lost a third of its stock market value since the beginning of the year, which would risk its removal from the Financial Times Stock Exchange (FTSE) 100.
Burberry said that it had begun its 45-day consultation where they would inform affected staff of their redundancy, with most of the cuts coming from its UK-based headquarters.
Fashion United reported that Burberry reported a 12% profit drop in May, with CEO Jonathan Akeroyd saying that the execution of its turnaround plan for 2024 took place "against a backdrop of slowing luxury demand." This meant the company was refocusing its brand image by evolving its product and strengthening its distribution.
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