Burberry management take pay shave as luxury brand keeps staff on payroll
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Senior management of British luxury fashion house Burberry has taken a voluntary pay cut and the company has opted to retain base pay for all its employees during the Covid-19 crisis, without relying on UK government support for jobs.
During the past three months, the firm has temporarily closed retail stores and implemented strict social-distancing protocols.
As reported last month, Burberry has converted its Castleford trench coat factory into a manufacturer of personal protection equipment (PPE) for medical and care workers during the pandemic.
“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,” said Burberry CEO Marco Gobbetti.
“I would like to thank our teams for their continued determination and resilience as we continue Thomas Burberry’s legacy of protecting others and caring for the community.”
Savings on executive salaries between now and June will be contributed to support communities in need globally is additional to the financial donations Burberry has made to vaccine research and charities alleviating food poverty – with monies going towards procuring and distributing PPE, helping food banks and supporting healthcare charities around the world.
Questions & Answers
Q.Did Burberry use the UK government's job support schemes during the Covid-19 crisis?
Did Burberry use the UK government's job support schemes during the Covid-19 crisis?
No, Burberry chose to retain base pay for all its employees without relying on UK government support for jobs. The company opted to safeguard jobs through its own internal measures during the pandemic.
Q.What is Burberry doing with the money saved from executive pay cuts?
What is Burberry doing with the money saved from executive pay cuts?
The savings from executive salaries between now and June will be contributed to support communities in need globally. This funding will help procure and distribute PPE, assist food banks, and support healthcare charities worldwide.
Q.What has Burberry's Castleford factory been producing during the pandemic?
What has Burberry's Castleford factory been producing during the pandemic?
The Castleford trench coat factory has been converted to manufacture personal protection equipment (PPE). This equipment is for medical and care workers to use during the ongoing global health emergency.