The Strategist

UK Mulberry to cut 25% of staff worldwide due to COVID-19

06/09/2020 - 06:00

Mulberry, a British manufacturer of luxury handbags, accessories and clothing, plans to cut about 25% of its employees worldwide because of the negative impact of the novel coronavirus pandemic, the company said.

As noted, the company staff consists of 1,400 employees. Mulberry explains the downsizing by the decline in sales due to the coronavirus pandemic. Also, according to the manufacturer of bags, stores, opened after the weakening of quarantine, will not be able to fully compensate for the losses due to the fact that it is necessary to observe measures of social distance in the trading floors.

"We expect that the restoration of our general sales levels in the medium term will be gradual. Even after the stores reopen, measures of social distance, lowering the level of tourists and buyers will continue to affect our income," the report said.

"Thus, the company begins the consultation process on proposals to reduce the number of employees by about 25% throughout the business," the statement reads.

Currently, about 120 Mulberry stores in 25 countries around the world remain closed.

British brand Mulberry, specializing in the production of leather bags, accessories and clothing, was founded in 1971 by Roger Saul.