Burberry: Luxury brand in consultation with Castleford staff after revealing plans to remove night shift
The luxury fashion brand Burberry remains in talks with staff about potential job cuts in Yorkshire after revealing plans earlier this year to remove the night shift at its Castleford factory.
The group revealed on Friday that retail revenues fell by 6 per cent to £433m for the 13 weeks to June 28, compared with a year earlier, as it was affected by a drag from currency rates.
However, there was a slowdown in the group’s sales decline amid efforts to turn around its fortunes after coming under pressure from weaker luxury spending.
Last November, the group launched a £40m cost-cutting programme.
In May, the company announced proposals to cut about 1,700 jobs worldwide over the next two years as part of the shake-up.
When asked about potential job cuts at its operations in Castleford, a Burberry spokesman said; “In May, we proposed the removal of the night shift at Castleford.
"We remain committed to making trench coats in the UK and preserving British craftsmanship. We will be making a significant investment in H2 (the second half of the year) to upgrade the Castleford facility and drive innovation
“Regarding roles, we said our organisational changes could impact 1,700 roles globally over the life of the programme, subject to consultation where applicable.
"On Castleford, we can’t say precise numbers, given we’re in consultation.”
In its fresh update, Burberry said it has made some progress in its transformation efforts but is still in the “early stages” of the potential turnaround.
The company said: “In the first half, we are continuing to prioritise investment and expect to see the impact of our initiatives build as the year progresses.”
It pointed towards efforts to simplify its operations and improve productivity in a bid to improve profit margins.
In the latest quarter, Burberry said there were improvements across its main regions, amid strong sales of “outerwear and scarves”.
Comparable retail sales grew by 1 per cent in Europe, the Middle East, India and Africa (EMEIA) as positive local spending helped to offset declines among tourists.
Meanwhile, its Americas business reported growth of 4 per cent for the quarter.
However, it said sales in Greater China fell 5 per cent for the quarter, while its Asia Pacific division saw a drop of 4 per cent, driven by a “challenging performance in Japan”.
Joshua Schulman, chief executive of Burberry, said: “The improvement in our first quarter comparable sales, strength in our core categories, and uptick in brand desirability gives us conviction in the path ahead.
“Our autumn 2025 collection is being well received by a broad range of luxury customers as it arrives in stores. Although the external environment remains challenging and we are still in the early stages of our transformation, we are encouraged by the initial progress we are starting to see.”
Richard Hunter, Head of Markets at interactive investor, commented: “This chequered update from Burberry highlights the scale of the challenge ahead, although there are some encouraging signs. Amid the noise, the ‘Burberry Forward’ strategy which the group announced in November is clearly beginning to have a positive impact, but the transformation will take time to filter through.”