Burberry Directors Take 20% of Pay Cuts

Last weekend British fashion giant, Burberry, announced its plans to implement a temporary pay cut of 20% to the company’s directors amidst the continuing chaos of the coronavirus. As such, the brand confirmed that it would not be relying on the UK government’s COVID-19 job retention scheme for employees who are unable to work during the crisis. 

The brands’ chief executive, Marco Gobbetti, said that he and the rest of the board of directors would be taking a 20% reduction in their base salaries between April and June. This money will then be donated to the Burberry Foundation Covid-19 Community fund. A scheme set up to support those communities most heavily affected by the pandemic by supplying them with PPE and food bank donations. 

Gobbetti went on to say that “since the outbreak of Covid-19, our priority has been the safety and wellbeing of our employees, our customers, and our communities”. 

“While we continue to take mitigating actions to contain our costs and protect our financial position, we are also committed to safeguarding jobs and supporting the relief efforts during this global health emergency.”

 

 

 

 

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1/3 Burberry contributes to the fight against COVID-19. We are using our global supply chain network to fast-track the delivery of 100,000 surgical masks to the UK National Health Service, for use by medical staff. We are also repurposing our trench coat factory in Castleford, Yorkshire, to make non-surgical gowns and masks for patients in UK hospitals. Though we are apart, we stand together. Stay safe, #StayHome.

A post shared by Burberry (@burberry) on Mar 28, 2020 at 3:59am PDT

The luxury retailer’s factory in Castleford, West Yorkshire, famed for creating their signature trench coats, has even been rerouted into creating PPE for medical and care workers. Gobbetti explained, “we are also sourcing surgical masks through our supply chain and supplying them to the NHS and charities such as Marie Curie, which provides nursing care for families living with a terminal illness in the UK”. To date, Burberry has donated over 100,000 pieces of PPE.

All Burberry’s UK stores currently remain closed as part of the country’s lockdown measures, and last month the business warned that their fourth-quarter sales would be 30% lower than expected. 

But while they continue to look hard at their cost base, reducing spend on non-essential areas, the brand will not be utilizing the British government’s furlough scheme, designed to pay out-of-work employees 80% of their salary. Instead, those who can’t work will continue to be paid in full by the business. Burberry employs around 10,000 globally, with a third of its workers based in the UK. 

Next up, Saint Laurent Skips Paris Fashion Week Due To COVID-19