Burberry warns 1,700 jobs at risk after annual loss / Photo: HENRY NICHOLLS - AFP/File
NYSE - LSE
| BCC | -1.29% | 92.515 | $ | |
| RBGPF | 1.27% | 63.81 | $ | |
| CMSC | -0.46% | 21.959 | $ | |
| SCS | -0.85% | 10.62 | $ | |
| NGG | 0.01% | 67.54 | $ | |
| JRI | -0.59% | 12.805 | $ | |
| RELX | 1.48% | 53.185 | $ | |
| RIO | -0.05% | 62.24 | $ | |
| BCE | -2.23% | 21.5 | $ | |
| CMSD | -0.4% | 22.3 | $ | |
| RYCEF | -0.19% | 10.68 | $ | |
| GSK | 0.49% | 36.53 | $ | |
| BP | -0.16% | 30.51 | $ | |
| AZN | -0.88% | 67.13 | $ | |
| VOD | 0% | 9.06 | $ | |
| BTI | -0.51% | 40.485 | $ |
Burberry warns 1,700 jobs at risk after annual loss
British luxury fashion label Burberry said Wednesday it could shed almost one-fifth of its global workforce over two years to reduce costs as it fell into an annual net loss.
The troubled group is in the midst of a turnaround plan to help boost sales and cut costs as the global luxury sector struggles with weak consumer demand, notably from China.
Net loss stood at £75 million ($99.8 million) in the 12 months to the end of March, compared to a profit of £270 million one year earlier, Burberry said in a statement.
Further cost-saving measures were announced on Wednesday, targeting an additional saving of £60 million by 2027, which would impact around 18 percent of its workforce, or 1,700 people.
Revenue also fell 17 percent to £2.46 billion.
"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," said chief executive Joshua Schulman.
Schulman was appointed CEO in July, replacing Jonathan Akeroyd, vowing to win back customers with a renewed focus on outerwear, including its famed trench coats.
The group also warned that the economic environment has become "more uncertain in light of geopolitical developments."
C.Acosta--GBA
