Reuters reports that British luxury goods group Burberry is going to cut over 500 jobs. Burberry did report an increase in revenues but they are going to be laying off employees anyway.
The 153-year-old maker of upmarket raincoats and handbags said on Tuesday revenues rose 9 percent at constant exchange rates to 329 million pounds ($477 million) in the three months to Dec. 31.
This compared with first-half growth of 13 percent and forecasts of 270 million to 298 million pounds, according to a Reuters poll of nine analysts.
Burberry said full-year adjusted profit would be in line with guidance it gave in November and that around 50 million pounds of cost cuts would underpin profit in 2009-10.
Retailers across the world are struggling as consumers cut spending amid fears of a deep recession and job cuts.
Burberry credits the revenue increase to heavy discounting and srong promotional activity. They plan to make the cuts so they can ride out the recession. The Wall Street Journal says Burberry CFO described trying to plan in this kind of environment is "extremely challenging."
The company celebrated its 150th anniversary in 2006. They were founded in 1856 by Thomas Burberry.
Reuters 
