Burberry to Cut 1,700 Jobs Globally

Burberry plans to lay off 1.700 employees globally in order to achieve around $133 million in total savings by fiscal-year 2027.

The U.K.-based luxury clothing maker announced the move Wednesday as it deals with sagging sales after reporting a 117% fall in its annual pretax profits in its most recent fiscal year.

Burberry had an operating profit of around $558 million in its previous fiscal year, but that turned to an operating loss of roughly $4 million in the most recent fiscal year. Its revenue was down 17% to about $3.4 billion.

CEO Joshua Schulman said in a statement, “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 and that we will deliver sustainable, profitable growth over time.”