Burberry will transfer around 300 roles to a new office in Leeds in October in a bid to streamline costs and “strengthen its ties with Yorkshire”.
Subject to consultation with employees, the new office will bring together shared service teams from finance, HR and procurement, as well as some customer service and IT roles for the UK and EMEIA regions.
The luxury brand said the move would generate significant savings by allowing it to reduce office space requirements in London, where its headquarters will remain.
In May last year, Burberry announced plans to deliver at least £100m of annualised cost savings by the end of its 2019 financial year.
“This is an important move for Burberry as we continue to deliver on the strategic priorities we outlined last year,” said chief creative and chief executive Christopher Bailey. “In addition to the benefits it will bring to the business, opening an office in Leeds reinforces our commitment to the UK and to Yorkshire, home of our iconic trench coat.”
In November 2015, the company revealed plans to build a £50m state-of-the-art manufacturing centre in Leeds to make its trench coats but has since placed these plans under review.
Chief operating and finance officer Julie Brown told the Yorkshire Evening Post today that the firm is continuing to assess plans for a weaving facility in Leeds.
“We are taking some time to think through the plans,” she said. “We are definitely committed to retaining manufacturing in Yorkshire.
“What we are doing is assessing the plans whether we build a new facility since that announcement Brexit has occurred and created a lot of uncertainty and since that time we have had a lot of changes within the business as well. We want to take some time to get this right. It will be a very important investment for us.”
Burberry has not yet responded to Drapers’ request for comment.