LONDON, May 14 (Xinhua) -- British luxury brand Burberry has warned it could cut up to 1,700 positions worldwide over the next two years, after reporting a 75 million British pounds (99.75 million U.S. dollars) annual loss for the year ended March 29.
The warning came as the company released its annual report on Wednesday, outlining a new cost-saving program targeting 60 million pounds of additional savings by 2027. The job cuts could affect nearly one-fifth of Burberry's global workforce, which stood at around 9,300 employees last year.
Over the past financial year, Burberry's revenue fell 17 percent to 2.46 billion pounds, down from 2.97 billion pounds the previous year. Adjusted operating profit slumped to 26 million pounds from 418 million pounds, with margins narrowing to just 1 percent.
Comparable store sales dropped 12 percent over the year. Though sales in the second half improved, declining 5 percent compared to a 20 percent fall in the first half, demand remained weak across key markets.
The company said it would accelerate cost-cutting and refocus on core products like trench coats and scarves, after years of losing ground to competitors.
Restructuring costs are estimated at around 80 million pounds, with 29 million pounds already recorded in the last financial year.
Burberry's Chief Executive Joshua Schulman said the company remains in the early stages of its turnaround. "While we are operating against a difficult macroeconomic backdrop, I am more optimistic than ever that Burberry's best days are ahead," he said.
Burberry's performance reflects a wider slowdown in the global luxury goods market. After a strong post-pandemic recovery, demand has eased amid economic uncertainty, inflation, and more cautious consumer spending. (1 British pound = 1.33 U.S. dollar)
