Luxury British designer brand Burberry announced it will be cutting 500 jobs worldwide, about 5 per cent of the group’s global workforce, in a bid to save up to €60 million in costs following a crash in its sales during the pandemic.
Burberry employs 3,500 people in the UK alone. The company said it will keep its headquarters in Leeds and London but will be cutting around 150 jobs across departments, while jobs in stores and manufacturing are safe, the Guardian reports.
Meanwhile, online fashion retailer ASOS said it expects its profits to hit the top end of market expectations in 2020 after registering a surge in sales in casual and active wear during lockdown.
The online retailer said its customer base grew by 6 per cent to 23 million during lockdown, and the rebound in sales came from a combination of growth in new customers as well as sales of “lockdown” product categories, for which customer demand outstripped supply, with a 50 per cent sales growth.
However, ASOS registered a decline in sales in its occasion wear categories, also due to lockdown restrictions.
Brick-and-mortar shops were particularly hard-hit the past three months. Burberry’s retail sales dropped by 48 per cent between March and June, including a 75 per cent dive in Europe and the Middle East, after shops and offices were forced to close to limit the spread of COVID-19.