After a fall in demand amid the Coronavirus pandemic, Mulberry (LON: MUL) has announced plans to cut its global workforce by 25%.
The luxury handbag maker employs 1,500 people globally. The redundancies will affect people across the head office, stores and manufacturing.
Thierry Andretta, the group’s chief executive, said in a statement: “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.”
“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.”
“We remain confident in the strength of the Mulberry brand and our strategy over the long-term,” he added.
Stores in the UK are set to re-open from 15 June, however, revenue will continue to be affected by the social distancing measures.
“Even once stores reopen, social distancing measures, reduced tourist and footfall levels will continue to impact our revenue,” said Andretta.
The group has already opened stores in South Korea, China, Europe, and Canada.
Shares in Mulberry have fallen 30% over the course of the year. This morning, shares in the group are trading down 5.61% at 185.00 (1210GMT).