Mulberry to cut global workforce by 25%
Luxury retailer Mulberry has announced the launch of a consultation process on proposals to reduce its workforce by approximately 25% across its global business.
The fashion giant said that the move was proposed following efforts to manage its cost base and operations in light of the ongoing “uncertainty” presented by the pandemic, and expects the recovery of its overall sales levels over the medium term to be “gradual”.
Despite this, the group was recently able to reopen stores in China and South Korea, as well as some stores in Europe and Canada. It also plans to commence a phased re-opening of some of its UK stores on 15 June 2020, in line with government guidelines.
It also continues to trade through its digital channels, which Mulberry said have operated in all markets “without interruption”. However, the group stressed that the positive e-commerce sales were not able to fully offset the decrease in demand experienced from store closures.
Thierry Andretta, Mulberry’s CEO, said: “We reacted swiftly to manage the impact of Covid-19 and continue to execute a well-developed plan to manage capital, reduce costs and maintain a robust liquidity position.
“In spite of the good performance of our sector leading digital and omni-channel platform, and our global network of digital concessions, the shutting of all our physical stores has had, and will continue to have, a marked effect on our 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.”
Earlier this year, Frasers Group bought a 12.5% stake in Mulberry, with the Mike Ashley-owned group stating at the time that the move was a “key strategic priority”.
Last November, the former Sports Direct International group rebranded as Frasers Group as part of a “multi-channel elevation strategy” that aimed to provide “unrivalled multi-brand offering to customers across sport, lifestyle and fashion”.
