Arizona Tribune - Burberry warns 1,700 jobs at risk after annual loss

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Burberry warns 1,700 jobs at risk after annual loss
Burberry warns 1,700 jobs at risk after annual loss / Photo: HENRY NICHOLLS - AFP/File

Burberry warns 1,700 jobs at risk after annual loss

British luxury fashion label Burberry said Wednesday it could shed almost one-fifth of its global workforce over two years to reduce costs as it fell into an annual net loss.

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The troubled group is in the midst of a turnaround plan to help boost sales and cut costs as the global luxury sector struggles with weak consumer demand, notably from China.

Net loss stood at £75 million ($99.8 million) in the 12 months to the end of March, compared to a profit of £270 million one year earlier, Burberry said in a statement.

Further cost-saving measures were announced on Wednesday, targeting an additional saving of £60 million by 2027, which would impact around 18 percent of its workforce, or 1,700 people.

Revenue also fell 17 percent to £2.46 billion.

"While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry's best days are ahead," said chief executive Joshua Schulman.

Schulman was appointed CEO in July, replacing Jonathan Akeroyd, vowing to win back customers with a renewed focus on outerwear, including its famed trench coats.

The group also warned that the economic environment has become "more uncertain in light of geopolitical developments."

P.A.Mendoza--AT