Layoffs in major textile companies have also reached Burberry. The luxury British brand announced on Wednesday that it will lay off 1,700 employees worldwide in an attempt to reduce costs and streamline its business, as reported by Reuters.
Burberry, in the early stages of a restructuring plan led by its CEO, Joshua Schulman, narrowly avoided losses in its 2025 fiscal year with an adjusted operating profit of 26 million pounds ($34.55 million), surpassing analysts' estimate of 11 million pounds.
Schulman took over the position last year and revamped Burberry's strategy and marketing to focus more on trench coats and scarves after the brand was affected by product mistakes, excessive price hikes, and a general crisis in the luxury sector.
Comparable sales in the fourth quarter dropped by 6%, exceeding analysts' average forecast of a 7% decrease.
"With the improved brand perception, we will increase the frequency and reach of our campaigns as our fall and winter collections hit the stores," Schulman stated in a release. Sales in America, Europe, the Middle East, India, and Africa decreased by 4% compared to last year, while sales in Asia Pacific decreased by 9%.
A bleaker outlook for U.S. consumer spending could pose challenges to Schulman's focus on American buyers to drive Burberry's sales.
Burberry did not specifically address U.S. tariffs in the statement but stated that "geopolitical events" were creating greater uncertainty in the economy and did not specify targets for its fiscal year 2026.