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Burberry (BRBY.L), a British luxury fashion brand, said on Friday that it will keep on paying its employees who can’t work because of store closures amid the virus outbreak. The company also added that it won’t depend on government support.
Burberry was already warned a month ago that its final quarter sales would be 30% lower because of the pandemic. Its shares were down by 2.6% at 0705 GMT, extending net losses of 41% in 2020. The company continues to monitor its cost base and decreased spending on non-essential areas.
In addition, Burberry stressed that it will not rely on government support for jobs in the United Kingdom, where more than a third of its employees are based. Some organizations have already used the government’s leave scheme for wage support in UK.
Starting April to June, senior managers and executives of Burberry will take voluntary 20% pay cut to donate funds to charities.
"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," Chief Executive Officer Marco Gobbetti said in a statement.
Its trench coat factory in Castleford, North England is now manufacturing non-surgical gowns and supplying them to hospitals. It has also provided more than 100,000 pieces of personal protection equipment (PPE).
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