Mulberry looks to cut a quarter of workforce
Mulberry is looking to cut 25 per cent of its global workforce as the British luxury brand looks to reduce its costs after demand for its products was dented by the coronavirus pandemic.
Mulberry, which employs around 1,500 people globally, said it expected the recovery of its sales levels in the medium term to be gradual, given the uncertainty over the impact and duration of the Covid-19 crisis on its business.
The group’s shares have fallen 30 per cent so far this year. Mulberry warned this morning that even once stores reopen, social distancing measures and decreased tourism would continue to impact revenue.
“As a result of this, we must manage our operations and cost base accordingly to ensure the company is the correct size and structure to reflect market conditions,” the company said.
“Launching a [employee] 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,” said chief executive Thierry Andretta.
Shares in Mulberry fell as much as 1.17 per cent in morning trading to 193.7p.
Mulberry has a total of 120 stores across 25 countries, the majority of which are currently closed due to national lockdowns.
Its online business has remained open during the Covid-19 pandemic, and it has re-opened stores in China and South Korea. The group’s UK stores will begin a phased re-opening on 15 June.