Iconic luxury brand plans major layoffs in desperate reset

After chasing trends, this iconic label is retreating to its roots.

A legendary fashion label — once synonymous with cool, effortless elegance — is now taking a wrecking ball to its most recent playbook.

Related: Luxury fashion group reeling after disastrous quarter

For years, this brand chased relevance through hype drops, high-concept runway shows, and price tags that pushed even loyal shoppers away — a full-on identity crisis that left it drifting from what made it great.

💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter💰💵

Now it’s in full reset mode. That means slashing 1,700 jobs, killing a factory night shift, and squeezing every ounce of excess from its business.

It’s a risky, high-stakes return to what made the brand famous, and failure isn’t an option.

Burberry announces major layoffs amid falling sales 

Burberry (BURBY)  announced it will eliminate about 20% of its global workforce over the next two years. That includes corporate roles, retail staff, and the entire night shift at its Castleford trench coat factory — a move it says will help rein in overproduction.

This is part of a broader restructuring blitz aimed at saving £60 million, in addition to the £24 million already shaved from costs in the second half of FY25.

Behind the cuts lies a year of painful numbers. Sales fell 15% at constant exchange rates, and adjusted operating profits plunged by 88%.

Related: Luxury designer brand flags shift in customer behavior

CEO Joshua Schulman, who joined last July, is pushing a return to form under his “Burberry Forward” strategy. The company plans to trim the fat, lean into trench coats and scarves, and stop chasing the fashion crowd — a clear return to the heritage that built the brand.

“With improvement in brand sentiment, we will be ramping up the frequency and reach of our campaigns,” Schulman said. “We have the most opportunity where we have the most authenticity.”

Burberry’s business reset shows early signs of momentum

Burberry is doubling down on what made it iconic: Britishness, outerwear, and weather-proof luxury.

The brand’s “It’s Always Burberry Weather” and “Wrapped in Burberry” campaigns helped drive better-than-expected retail orders and a bounce in customer engagement. A scarf bar pilot and new digital styling tools are already live.

Schulman’s bet? That a cleaner, tighter, and more focused Burberry can claw its way back.

Despite the slump, some analysts are turning bullish. Citi and Deutsche Bank rated the stock a “buy,” betting that tight cost control and Schulman’s refocus will pay off. Jefferies, however, called it a “slow burn” and warned the brand still has much to prove.

Only time will tell. Clearly, Burberry isn’t just trimming the edges. It’s cutting to the core, betting that what it does best is still enough to win.

And this time, it can’t afford to miss.

Related: Veteran fund manager unveils eye-popping S&P 500 forecast