British fashion house Burberry is responding to the current challenges with an ambitious new savings plan, which could lead to the loss of 20% of its workforce by 2027. The stated aim is to reduce sales to £3 billion, with the full support of creative director Daniel Lee.

Since his arrival in the summer of 2024, chief executive Josh Schulman has acted swiftly to stabilise the business, whose revenues fell by 17% in the 2025 financial year to £2.46 billion. In the twelve months to 29 March, like-for-like retail sales were down 12%, although there has been a gradual improvement.

This fall in revenues led to an operating loss of £3 million, compared with a profit of £418 million the previous year. However, the trend reversed in the second half of the year, with a profit of £67 million offsetting a loss of £41 million in the first six months.

Another encouraging sign was that stocks fell faster than expected, exceeding analysts’ expectations. As part of its cost-cutting measures, Burberry is also planning to cut the night shift at its factory in Castleford, Yorkshire, where its iconic gabardine trench coats are made. Around 25% of staff at the site will be affected.

According to the brand, this reduction in activity is mainly due to overproduction, a problem currently facing many British companies.

FM