Coronavirus: Mulberry plans to cut 25% of its global workforce
The global fashion brand has been hit by a fall in demand for luxury goods during the COVID-19 pandemic.
Monday 8 June 2020 18:15, UK
Luxury brand Mulberry plans to cut 25% of its global workforce as the coronavirus pandemic causes a steep fall in sales for its upmarket fashion goods.
The London-listed company said it only expects a "gradual" recovery in demand from the deep slump caused by the uncertainty from the COVID-19 pandemic.
Mulberry employs 1,400 people globally with most of its staff based in the UK.
The majority of the fashion retailer's 120 stores across 25 countries remain currently closed due to national lockdowns.
Chief executive Thierry Andretta said the decision to close physical stores will have a "marked effect" on the business.
He added: "Launching a consultation process has been an incredibly difficult decision for us to make but it is necessary for us to respond to these challenging market conditions, protect the maximum number of jobs possible and safeguard the future of the business.
"We remain confident in the strength of the Mulberry brand and our strategy over the long-term."
The company previously said it was trying to redeploy as much of its workforce as possible to save jobs, as well as cutting executive pay at the top level.
Data from consumer intelligence company Springboard showed that UK retail activity only picked up marginally in May, after falling to the lowest levels in April.
FTSE 100 fashion giant Burberry earlier this year also said the lack of demand had led to steep falls in revenue.
Meanwhile, oil firm BP has announced it will cut 15% of its global workforce to cope with the drop in the oil price.