British fashion house Burberry Group Plc is facing another round of job cuts, this time potentially affecting hundreds of employees, mainly in the UK. The news comes following a sharp decline in the company’s stock market value, highlighting the ongoing financial pressures faced by the iconic trench coat maker.
Employees were informed of the potential redundancies during a Zoom meeting in late June. Those affected were told they either faced redundancy or would have to reapply for their positions. Burberry has now begun a 45-day consultation period, signaling that the job cuts are likely to proceed.
Union officials are currently negotiating redundancy settlements with a select group of employees. Fear is mounting that as many as 400 jobs could be at risk, although this number remains unconfirmed. Burberry has declined to comment on the situation.
This news follows a previous round of 500 job cuts in 2020, when Burberry sought to save £55 million ($70.5m) amid the pressures of the global pandemic. The company’s most recent annual report indicates that Burberry employed an average of 9,169 full-time equivalent workers during the 2023-24 fiscal year.
The latest job cuts highlight the challenges faced by Burberry in navigating a rapidly changing market landscape. The company’s stock market performance and the ongoing financial pressures appear to be driving these decisions, raising concerns about the future of the British fashion house and the impact on its employees.