Burberry reportedly cutting "hundreds" of jobs
Burberry Group
650.00p
16:44 04/10/24
British high-end fashion group Burberry is expected to announce "hundreds" of job cuts in the UK as part of a cost-cutting programme following a massive drop in its share price since the start of the year.
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The company, which employs more than 9,000 people worldwide, is currently working on redundancy programmes, having already started the 45-day consultation period, according to The Telegraph.
Employees were reportedly informed about the impending cuts in late-June, with 400 jobs thought to be at risk. The majority of redundancies are expected to affect its UK workforce, the paper said.
Burberry's stock has fallen 37% since the start of the year, when it announced a profit warning which it blamed on the wider luxury-market slowdown.
In May at the time of its results for the year ended 30 March – in which it reported a 34% drop in adjusted operating profits to £418m – the company said it expected first-half trading to "remain challenging".
The share-price decline has raised speculation in recent months that Burberry could be a takeover target. The stock is now 57% lower than it was last year and currently trades at levels not seen since mid-2010.
Shares were down a further 1% at 880.64p in early deals on Monday.