Fashion business Mulberry is planning to cut around 25 per cent of its global workforce as it battles with the impact of the coronavirus pandemic on its business.
The Somerset-headquartered firm has launched a consultation on plans to reduce its workforce of around 1,500 staff by a quarter.
The company said the majority of its stores had remained closed since it shut branches in March in line with the government’s lockdown rules.
It said it had re-opened stores in China and South Korea and is planning to open UK stores on June 15.
Although digital sales have been “good”, according to the luxury handbag maker, the company said it could not offset the decrease in demand from store closures.
Thierry Andretta, Mulberry's chief executive, 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.
“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.
“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."
Mulberry said its borrowing facilities remain undrawn but it expects recovery in overall sales levels over the medium term to be “gradual”, with social distancing and reduced footfall likely to continue impacting revenue.
