Burberry warned it could cut as many as 1,700 jobs worldwide
Burberry warned it could cut as many as 1,700 jobs worldwide AFP

British luxury fashion label Burberry said Wednesday it could shed almost one-fifth of its global workforce over two years to reduce costs as it fell into an annual net loss.

The troubled group is in the midst of a turnaround plan to help boost sales and cut costs as the global luxury sector struggles with weak consumer demand, notably from China.

Net loss stood at GBP75 million ($99.8 million) in the 12 months to the end of March, compared to a profit of GBP270 million one year earlier, Burberry said in a statement.

Further cost-saving measures were announced on Wednesday, targeting an additional saving of GBP60 million by 2027, which would impact around 18 percent of its workforce, or 1,700 people.

Revenue also fell 17 percent to GBP2.46 billion.

"While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry's best days are ahead," said chief executive Joshua Schulman.

Schulman was appointed CEO in July, replacing Jonathan Akeroyd, vowing to win back customers with a renewed focus on outerwear, including its famed trench coats.

The group also warned that the economic environment has become "more uncertain in light of geopolitical developments."