Burberry Cut Jobs

 

Luxury fashion firm Burberry has said it could cut some 1,700 jobs as part of plans to reduce costs by 2027. The British designer brand - famed for its distinctive camel, red and black check pattern - announced the proposed savings on Wednesday as it reported a £66m loss in the last financial year. The proposed job cuts would reduce its global workforce by almost a fifth and include potential redundancies at its Castleford factory in West Yorkshire. Burberry chief executive Joshua Schulman said most job losses would come from its head office teams around the world, but said the cuts would "naturally" be focused in the UK, where most of its staff are based. He confirmed staff rotas would be reorganised and that night shifts at its factory in Castleford, which makes trench coats priced from £1,000 to £10,000 each, would be scrapped. "For a long time we have had overcapacity at that facility, and that is simply not sustainable," Mr Schulman said. Burberry said it would align "schedules with peak store traffic" in its shops, which would result in the reduction of some jobs. It added savings would also come from "operating expenses, with increased efficiency of spend in procurement and real estate". The company said the cuts were "subject to consultation where applicable". Burberry was founded in 1856 and has been making its famous raincoats in Yorkshire since 1972. The designer brand previously announced £40m cost-savings programme in November, meaning it now plans to create the combined annualised savings of £100m by Spring 2027. Burberry's sales have been struggling amid weaker demand for luxury goods in general, with trading in China and the Americas seeing some of the biggest falls last year.

BBQ - What impact will these cuts have on staff motivation? Would there have been a better way to deal with the under capacity seen at Burberry?

Burberry

Sainsburys Cut Jobs & Cafes

Sainsbury's has announced plans to cut 3,000 jobs and shut down its in-store cafés as part of a broader cost-cutting strategy aimed at saving £1 billion over the next three years. The job cuts will affect roles in its contact centre in Widnes, Cheshire, in-store bakeries, and some local fulfilment centres. This move is part of the supermarket's "Next Level Sainsbury's" strategy, which focuses on streamlining operations and investing in areas that provide greater value to customers. The decision to close cafés and reduce staff is a response to changing consumer habits and the need to adapt to a more efficient business model. Sainsbury's has assured affected employees that it will support them in finding alternative roles within the company where possible. This restructuring aims to enhance the supermarket's competitiveness and ensure long-term sustainability in a challenging retail environment.

BBQ - How might Sainsbury's decision to cut jobs and close in-store cafés impact its brand image and customer loyalty, and what strategies could the company employ to mitigate any negative effects?

Sainsburys Cut Jobs