Burberry warns 1,700 jobs at risk after reporting annual loss

British luxury fashion label Burberry said yesterday it could shed almost one-fifth of its global workforce over two years to reduce costs as it fell into an annual net loss.

- ALEXANDRA BACON

The troubled group is undergoing a turnaround plan to help boost sales and cut costs as the global luxury sector struggles with weak consumer demand, notably from China.

Burberry’s net loss stood at £75 million ($100 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.

Revenue slid 17% to £2.46 billion.

Further cost-saving measures were announced yesterday, targeting additional savings of £60 million by 2027, which would impact around 18% of its workforce, or 1,700 people.

“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.