• by Sarah Mahoney , Staff Writer @mahoney_sarah, May 14, 2025

Image above: Kate Winslet stars in Burberry's latest ad campaigns.

Burberry’s 1,700 job cuts—18% of its workforce—signal deepening trouble in luxury retail, even as the brand doubles down on marketing to stage a comeback. The British fashion house says recent campaigns are working, but global volatility and shifting consumer sentiment are pushing it, and much of the apparel sector, into survival mode.

The layoffs accompany modest improvement: While full-year sales fell 17% to $3.4 billion, the second half showed some stabilization. Full-year losses improved to $4 million, compared to $558 million a year ago. In announcing the results, CEO Joshua Schulman credited a sharper focus on core categories and brand storytelling. “Our customers are responding to our Timeless British Luxury brand expression,” he said, noting strong performance in trenchcoats and scarves, long-time Burberry signatures.

The cuts, part of a broader restructuring effort expected to save about $80 million, come as Schulman pledges to increase marketing investment, following the success of the “It’s Always Burberry Weather” campaign launched last year. He is also accelerating transformation plans that were announced in November. Those include enhanced visual merchandising, a tighter focus on key categories, and reigniting brand desire across global markets.

Still, like many, Burberry withheld forward guidance, citing macroeconomic uncertainty. More than 90% of apparel sold in the U.S. is produced offshore, leaving brands especially vulnerable to ongoing tariff concerns and shifting consumer demand in key markets like China.

The company’s actions reflect a broader reset across the luxury landscape. Saks recently cut 5% of its workforce, while high-end automakers including Audi, Mercedes-Benz, and Porsche have also announced layoffs.

For marketers, Burberry’s dual moves—trimming costs while leaning harder into brand equity—underscore a growing reality: In a volatile world, survival may depend less on scale and more on storytelling.