Fashion firm Mulberry will cut its workforce by 25% as it seeks to reduce its cost base with demand hit by the coronavirus pandemic.
Mulberry said the decision was taken as a result of the uncertainty caused by COVID-19 on its business.
Mulberry is famed for its handbags which sell for over £1000 and are favourites among models like Kate Moss as well as Anna Friel and Victoria Beckham.
The leather goods firm added that even once stores reopen, social distancing measures and reduced tourist and footfall levels will continue to hurt sales.
The company said: "As a result of this, we must manage our operations and cost base accordingly to ensure the company is the correct size and structure to reflect market conditions."
Thierry Andretta, Mulberry's chief executive officer, said: "We reacted swiftly to manage the impact of COVID-19 and continue to execute a well-developed plan to manage capital, reduce costs and maintain a robust liquidity position.
"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. We remain confident in the strength of the Mulberry brand and our strategy over the long-term."
In February this year, Mike Ashley's Frasers Group bought a 12.5 per cent stake in the company, worth £19 million.
