Burberry warns 1,700 jobs at risk after annual loss / Photo: HENRY NICHOLLS - AFP/File
NYSE - LSE
| RBGPF | 0% | 73.27 | $ | |
| RYCEF | 1.36% | 13.94 | $ | |
| CMSC | 0.04% | 23.45 | $ | |
| AZN | 0.24% | 80.71 | $ | |
| BTI | 0.19% | 59.125 | $ | |
| RELX | -0.99% | 48.215 | $ | |
| RIO | 0.74% | 61.07 | $ | |
| GSK | 0.53% | 40.285 | $ | |
| BP | 0.01% | 33.885 | $ | |
| NGG | -0.94% | 71.41 | $ | |
| CMSD | -0.06% | 23.675 | $ | |
| VOD | -0.72% | 11.815 | $ | |
| BCC | -0.61% | 83.985 | $ | |
| JRI | -0.23% | 13.3 | $ | |
| BCE | -0.76% | 25.545 | $ | |
| SCS | -0.43% | 16.11 | $ |
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.Freistetter--SbgTB
