The fashion industry, spanning luxury to consumer goods, is undergoing workforce reductions. Companies like Burberry, LVMH, Estée Lauder, Coty, and Zalando are restructuring to address cost pressures and integrate artificial intelligence. This move impacts a wide range of businesses, regardless of their market position or business model.
International giants anticipate over 10,000 layoffs by 2025, amidst geopolitical and macroeconomic instability. Luxury goods, cosmetics, and e-commerce sectors are among the first to implement these adjustments. They are often presented as strategic renewals or improvement projects.
While each group justifies its decisions with internal dynamics, a common backdrop emerges. This includes slower economic growth, high interest rates, persistent inflation, geopolitical tensions, tariff pressures, and the rapid integration of artificial intelligence. These factors influence key processes from supply chains to design and customer service.
Burberry, for example, announced substantial workforce reductions alongside its annual financial results. The British luxury company, with over 9,000 employees globally, plans to eliminate approximately 1,700 positions. This accounts for about 18% of its workforce.