Luxury fashion brand Burberry is preparing to cut hundreds of jobs as part of a cost-cutting programme in response to declining profits.
As reported by The Telegraph, the retailer’s stock market value has dropped by over a third since the start of the year and faces potential removal from the FTSE 100.
The restructuring was announced to staff via a Zoom meeting in late June.
Affected employees were informed they would face redundancy or need to reapply for their positions.
Burberry has initiated a 45-day consultation period, during which hundreds of jobs, primarily in the UK offices, could be eliminated.
Union officials are reportedly working with a select group of workers to negotiate redundancy settlements.
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Although Burberry has not disclosed the number of employees affected, up to 400 roles are expected to be cut.
This move comes as Burberry struggles to achieve a turnaround, with its full-year profits recently falling 36 percent to £418 million amid a challenging economic environment.
Sales also declined by four percent over the year.
CEO Jonathan Akeroyd admitted that “executing our plan against a backdrop of slowing luxury demand has been challenging.”
