Companies

Mulberry cuts jobs amid efforts to turn around the business

Dec 2, 2024 United Kingdom

The British luxury handbag company has cut dozens of jobs as part of a major shake-up to turn the business around, after a sales plunge of 19% in the six months to December

Andrea Baldo, Mulberry’s recently appointed chief executive, told the PA news agency that the company had axed 85 jobs, about a quarter of its 350-strong workforce. The cuts have mainly affected the London Design Centre and some office staff in Somerset. The news follows the company’s efforts to make itself “leaner” as part of a strategic overhaul to help it return to profit.

Mulberry’s revenue fell by 19% to 56.1 million pounds (67.5 million euros) in the six months to 28^th of September and pre-tax losses widened to 15.7 million pounds (18.9 million euros) from 12.8 million pounds (15.4 million euros) in the same period last year. “Though I’ve only been in the role of CEO for under three months, the first half results illustrate the clear need to reprioritise and rebuild the business”, Andrea Baldo said.

“There is no question that our industry is facing a period of significant uncertainty, driven by a challenging and volatile macroeconomic environment that is impacting consumer confidence in several markets, particularly in our home country”. In the UK, the company’s revenue fell by 14% year-on-year to 31.3 million British pounds (37.7 million euros) amid “lower consumer confidence”, but news was no better from countries such as Denmark, Italy, China, and South Korea.

“However, with the teams’ efforts on cost-cutting, a strengthened balance sheet, a renewed brand-first approach and a refreshed business strategy – details of which I’ll share in due course – I am confident we are making the right moves to bring Mulberry back to profitability”, concluded the CEO.

It is already known that, as part of the ongoing strategic review, there will be a shift in the company’s pricing and distribution strategies towards an “affordable luxury” price point.

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Image Credits: mulberry.com

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