Burberry, the British fashion house, which reported poor annual sales in a precarious time for the global luxury industry, is looking to save $80 million in cost-cutting efforts, which will see 20 per cent of its global workforce lose their jobs.

Burberry said on Wednesday that it would slash up to 1,700 jobs in a bid to cut costs as it tries to return to profit after a period of poor sales in an increasingly volatile luxury sector. The job cuts, which represent 20 per cent of the company’s global workforce, are part of larger organizational changes expected to save the company £60 million, or about $80 million.

The company announced the cost-cutting strategy after reporting that it swung to an annual loss in the 2025 financial year, which ended March 29, from a profit last year. Operating losses were £3 million, or $4 million, down from a £418 million, or $558 million, profit the year prior. Revenues went down 17 percent to £2.5 billion, or $3.4 billion.

Burberry has struggled amid recent managerial and designer changes, while a drive to increase prices fell flat with customers, and a global slowdown of luxury consumption, particularly in China, its biggest overseas market.

The company said the cost-cutting efforts, combined with earlier measures, could lead to planned savings of up to £100 million, or $133 million, by 2027. Most job losses will hit corporate offices, but could also affect retail stores and factories.

Joshua Shulman, Burberry CEO, said he was “more optimistic than ever that Burberry’s best days are ahead and that we will deliver sustainable profitable growth over time”.

New York Times News Service