Hundreds of jobs at risk at Burberry

The news follows the luxury brand’s dramatic fall in profits. In May, Burberry revealed its adjusted operating profit for the 52 weeks ended 30 March 2024 fell by 34% year on year to £418m.

On Sunday, The Telegraph reported that the business announced restructuring plans in late June, with staff told they could face redundancy or be required to reapply for their roles. The newspaper reports that up to 400 roles are understood to be at risk. The job losses are believed to be predominately at Burberry’s UK offices.

Burberry has lost more than a third of its stock market value this year and could be removed from the FTSE 100.

It has been a difficult time for the brand, amid a slowing demand for luxury purchases. Burberry’s largest market, the Asia Pacific region, saw a 17% year-on-year decline in fourth-quarter sales, led by a 19% fall in mainland China, which had previously boosted the brand’s post-Covid recovery, Drapers reported in May.

Speaking at the time, CEO Jonathan Akeroyd said: “Executing our plan against a backdrop of slowing luxury demand has been challenging.

“While our full year 2024 financial results underperformed our original expectations, we have made good progress refocusing our brand image, evolving our product and strengthening distribution, while delivering operational improvements.”

Burberry announced in May that Akeroyd waived his bonus amid the challenging trading conditions.

Drapers has contacted Burberry for comment.