Burberry, the iconic British luxury fashion house, recently announced plans to cut approximately 1,700 jobs globally. This move, detailed in the Burberry profit and earnings report of 2025, has sent shockwaves through the global fashion industry. Burberry layoffs have now raised questions about the brand’s legacy and its place in a shifting luxury market.
A Snapshot of Burberry’s 2025 Financial Struggles
The Burberry earnings report for fiscal 2025 (ending March 29, 2025) paints a stark picture: an operating loss of £3 million, a sharp decline from the £418 million profit the previous year, and a 17% Burberry revenue loss 2025, with revenues dropping to £2.46 billion from £2.97 billion. Despite beating Burberry’s profit expectations 2025 with an adjusted operating profit of £26 million (surpassing analyst estimates of £11 million), the brand faced significant challenges, including a global slowdown in luxury spending, particularly in China.
Historical Context: Burberry Past job cuts and Strategic Shifts
The brand, founded in 1856 and renowned for its trench coats and check pattern, has faced multiple restructuring phases over its 169-year history. In 2009, during the global financial crisis, Burberry cut jobs and closed facilities in the UK, including a factory in Rotherham, to streamline costs amid declining demand. Similarly, in 2020, the COVID-19 pandemic prompted Burberry to reduce its workforce by approximately 500 roles globally, citing reduced luxury retail footfall.
The Burberry job cuts in 2025 echo these earlier moves but are notably larger in scale. Unlike the 2020 cuts, which focused on retail and temporary staff, the 2025 Burberry layoffs target head office roles, particularly in London and Leeds, and include the elimination of the night shift at the Castleford, Yorkshire factory, affecting around 170 jobs. This shift reflects a strategic pivot under Schulman, who replaced Jonathan Akeroyd in 2024, to refocus on core products like trench coats and scarves, as outlined in the “Burberry Forward” plan. Historically, Burberry’s layoffs have coincided with leadership changes—Schulman is the fourth CEO in a decade—highlighting a pattern of aggressive restructuring to correct strategic missteps, such as the brand’s failed push into ultra-high-end luxury under predecessors Marco Gobbetti and Akeroyd.
Burberry vs. Other Luxury Brands
The Burberry layoffs news must be viewed within the broader luxury sector’s challenges. The global luxury market has faced a slowdown since 2023, driven by reduced spending in China, inflation, and geopolitical uncertainties, including US tariffs under the Trump administration. Burberry’s peers, such as LVMH (owner of Louis Vuitton) and Kering (Gucci, Saint Laurent), also reported sales declines in 2025, with Kering’s sales dropping 14% in Q4 compared to Burberry’s 6% decline in the same period. However, unlike Burberry, these conglomerates have diversified portfolios, mitigating the need for drastic layoffs.
Smaller luxury brands provide closer comparisons. In April 2025, Coty, which licenses Burberry’s fragrances, announced 700 job cuts to save $130 million annually, mirroring Burberry’s cost-cutting rationale. Similarly, Mulberry, another British luxury brand, reduced staff in 2024 amid declining UK sales, exacerbated by the 2021 withdrawal of VAT refunds for overseas visitors, a policy Burberry also cites as a drag on its performance. These examples illustrate that luxury brand job cuts are part of an industry-wide trend, but Burberry’s scale (18% of its workforce) is among the most significant, reflecting its acute financial pressures.
Layoffs Across Sectors
The Burberry global job cuts align with a broader wave of layoffs in 2025, as companies across industries grapple with economic uncertainty. The tech sector, for instance, saw 284 companies lay off 53,399 employees in 2025, including Microsoft’s 6,000 job cuts. In automotive, Nissan reported a $4.5 billion loss and reduced staff, citing tariff-related uncertainties, paralleling Burberry’s concerns about US trade policies. Even in retail, Adidas and BP announced significant layoffs, with BP cutting 5% of its global workforce.
Historically, Burberry’s layoffs have been tied to strategic realignments. Schulman’s “Burberry Forward” strategy aims to reverse this by emphasizing British heritage and iconic products, but the layoffs signal a leaner operational model to fund this pivot. Comparatively, LVMH’s focus on brand diversification and Kering’s investment in digital channels have avoided similar workforce reductions, highlighting Burberry’s lag in adapting to modern luxury trends.
Economic and Policy Context
Burberry’s sales decline and layoffs are compounded by external factors. The UK’s post-Brexit VAT refund withdrawal has made it the least competitive European destination for tourist shopping, a point Schulman emphasized. Additionally, potential US tariffs pose a $680 million risk, potentially forcing Burberry to pass costs to consumers, a strategy that has failed in recent years. Historically, Burberry navigated the 2008 financial crisis by diversifying into digital innovation, but its current focus on cost-cutting over innovation may limit long-term resilience compared to competitors.
Future Outlook: Can Burberry Recover?
Burberry’s historical resilience, i.e., surviving wars, recessions, and fashion trends, suggests potential for recovery, but the 2025 layoffs highlight significant risks. Compared to rivals, Burberry’s reliance on a single brand and heavy exposure to China make it vulnerable. Schulman’s optimism about “Burberry’s best days ahead” hinges on balancing cost-cutting with strategic investments in digital innovation and customer experience, areas where the brand once led.
Subscribe to The HR Digest for the latest HR news and updates.
