Burberry Announces Job Cuts Amid Profit Drop

Burberry, the luxury fashion brand, is facing significant challenges as it considers cutting hundreds of jobs amidst a sharp decline in profits and stock market value. The restructuring plans involve potential redundancies or reapplications for affected employees, with up to 400 roles at risk, primarily in the UK. The company's struggle with slowing luxury demand, particularly in the Asia Pacific region, has led to a 36% drop in full-year profits to £418m. CEO Jonathan Akeroyd acknowledged the difficulties faced in this economic environment and waived his bonus in recognition of the tough trading conditions. Burberry's ongoing performance issues have raised concerns about potential takeover bids due to its declining share price and long-standing underperformance in organic growth.