Luxury fashion brand Burberry is preparing to cut up to 1,700 jobs worldwide as it contends with declining profits and ongoing trade tensions, particularly linked to tariffs introduced under former U.S. President Donald Trump, according to Supply Chain Brain.
The planned job cutsโimpacting nearly one-fifth of the companyโs workforceโare part of a cost-saving effort expected to reduce expenses by approximately ยฃ100 million ($133 million) by 2027. Most of the layoffs will affect corporate roles, especially in the U.K., according to CEO Joshua Schulman. Burberry also intends to adjust operations at its manufacturing sites, including the end of night shifts at its Castleford factory.
The announcement follows a steep financial downturn for the British brand. In the fiscal year ending March 29, 2025, Burberry reported a ยฃ3 million operating loss, a stark contrast to the ยฃ418 million profit recorded the previous year. Revenue also dropped 17%, falling from ยฃ2.9 billion in 2024 to ยฃ2.3 billion in 2025.
Burberry attributed the financial hit to geopolitical developments, highlighting uncertainty from unresolved trade issues. Despite the recent unveiling of a new trade agreement between the U.S. and the U.K. on May 8, the 10% tariffs imposed during Trumpโs presidency remain in effect. The deal is expected to provide relief to industrial sectors like steel and automotive, but fashion companies such as Burberry are likely to continue facing the impact of these levies.
