Burberry reports 117% drop in profits and says 1,700 jobs will go worldwide

Burberry is to cut about 1,700 jobs globally by 2027 - including removing the entire night shift at its Yorkshire raincoat factory - as the struggling luxury fashion house ramps up its efforts to reduce costs after a tumble in profits.

- Lauren Almeida Sarah Butler

The UK luxury brand announced the job cuts yesterday after reporting a 117% fall in its annual pre-tax profits in the last financial year. It recorded a £66m loss, down from a profit of £383m, after struggling against a broader malaise in the global luxury goods industry.

The company said a new plan to find £60m in cost savings could affect 1,700 jobs. Burberry employed about 9,300 people around the world last year, so the cuts could affect almost a fifth of its staff.

Joshua Schulman, the chief executive of Burberry, said most of the cuts would be at the group's head offices around the world, led by London, but jobs would also go by reorganising staff rotas in stores and dropping one shift at its trench-coat factory in Castleford, West Yorkshire. He said no significant store closures were planned.