Burberry, Castleford: Council to offer support to staff affected by proposed job cuts
There could be 150 local, job losses
Wakefield Council has said it would offer support to staff affected by proposed job cuts at Burberry’s manufacturing site in Castleford.
The luxury fashion retailer said it was preparing to axe 1,700 jobs globally as part of plans to reduce costs by 2027.
The proposed savings were announced on Wednesday (May 14) as the company reported a £66m loss in the last financial year.
Around 150 of 635 employees based Castleford’s Coronation Mills, on Albion Street, could be affected due to the elimination of the night shift.
Responding to the announcement, Wakefield Council leader Denise Jeffery said: “We know that everyone who works for Burberry will be understandably worried by this announcement.
“Burberry has a long-standing connection to our district and is one of our biggest employers, with over 600 people working at the factory in Castleford.
“The proposed job cuts will cause a lot of uncertainty and anxiety for many local families.
“We’re looking to get more information from Burberry about their plans and understand how they are going to engage with staff and the trade unions on these proposals.
“We’ll also look to offer support to any affected employees.
“We want Burberry to continue to play an important role in our local economy, as it has done for the past 50 years.”
The job cuts form part of a wider cost-cutting drive at Burberry, with the company announcing plans to double its savings target to £100 million a year by the 2027 financial year.
A significant portion of those savings are expected to come from “people-related costs,” according to the company, which will be rolled out over a two-year period.
The majority of the job reductions are expected to come from head office roles, particularly in London and Leeds.
In February this year, it was announced that planning permission had been granted for the upgrade of the Castleford factory.
Burberry chief executive Joshua Schulman told investors: “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.”