In a dramatic move that has sent shockwaves through the fashion world, British luxury brand Burberry has terminated its diversity and inclusion chief while simultaneously announcing plans to slash approximately 1,700 jobs worldwide.
The surprise dismissal of the diversity head, who had been hailed as a key thought leader within the company, comes as new CEO Jonathan Akeroyd attempts to engineer a significant turnaround for the struggling fashion house.
Major Restructuring Hits Workforce
The sweeping changes form part of a comprehensive cost-cutting strategy that will see Burberry eliminate around 1,700 positions across its global operations. This represents one of the most significant workforce reductions in the company's recent history and signals the seriousness of the challenges facing the luxury retailer.
Industry analysts suggest the moves reflect growing pressure on Akeroyd to demonstrate rapid progress in revitalising the brand's fortunes after several quarters of disappointing performance.
Diversity Role Elimination Raises Questions
The removal of the diversity chief position has particularly raised eyebrows within the fashion industry, coming at a time when most major brands have been strengthening their commitment to diversity, equity and inclusion initiatives.
Sources close to the situation indicate the diversity head had been considered an important voice in shaping company culture and was widely respected within the organisation for their progressive approach to workplace inclusion.
Turnaround Strategy Under Scrutiny
Burberry's aggressive restructuring comes amid declining sales and increasing competition in the luxury sector. The company has been struggling to maintain its market position against European rivals like Louis Vuitton and Gucci, which have shown stronger performance in key Asian markets.
The dual announcement of both the diversity chief's departure and massive job cuts suggests Akeroyd is willing to make controversial decisions to streamline operations and reduce costs.
Market watchers will be closely monitoring how these drastic measures impact both Burberry's financial performance and its reputation as an employer committed to progressive values.
