Burberry, the famous British fashion house, is set to cut hundreds of jobs as part of a cost-cutting program aimed at stemming the fall in profits. The restructuring comes at a time when the company is struggling to turn around its financial situation following a significant fall in its stock market value.
It’s not getting any better for Burberry. The British fashion house is set to cut hundreds of jobs, mainly in the UK, as part of a radical cost-cutting program designed to support falling profits.
According to information revealed by the British daily Telegraph, employees were informed of the restructuring at a Zoom meeting at the end of June.
They were told that they might be made redundant, or that they would have to reapply for their jobs. A 45-day consultation was launched, indicating that up to 400 jobs could be at risk. The job cuts are expected to affect mainly the company’s UK offices in Leeds and London.
This latest wave of redundancies follows a proposal to cut 500 jobs in 2020, as the company sought to save £55 million (€65 million ) due to the pressures of the Covid-19 pandemic.
The redundancy process was described as “brutal” by some employees. Burberry, which employs 9,169 people worldwide, refuses to specify the exact number of workers affected. Union officials appear to be coordinating the redundancy arrangements with a select group of employees, but fears of job losses remain high among staff.
Difficult economic context
Read also>BURBERRY STREETS SETS UP SHOP IN NEW YORK
Featured photo : © Press