London, UK – Burberry is set to axe 400-500 staff – about 20% of its international workforce – in a shocking cost-cutting exercise following its daring reinvention as a high-fashion behemoth spectacularly backfiring. The redundancies, among middle managers and non-customer-facing staff, follow as the 168-year-old brand is hit with triple threats: Chinese demand slowing, design flops, and a share price halved since 2023.
The Collapse of a British Icon
The Failed Pivot:
– Daniel Lee’s “punk heritage” rebranding repelled loyal customers
– $3,500 “distressed knitwear” and barefoot runway shows failed miserably
– Lost #3 position in UK luxury to newcomer Balmain
The Financial Consequences:
– Q1 sales fell 12% in key Asia market
– Operating margins squeezed to 15% (vs. LVMH’s 26%)
– Stock now trades at 2016 levels
The Turnaround Plan:
1️⃣ Refocus on heritage trench coats (60% of historic profits)
2️⃣ Close 38 underperforming stores, mostly in secondary Chinese cities
3️⃣ Rehire Christopher Bailey-era design team consultants
