Burberry has announced job cuts in both the UK and Spain.

Burberry has announced it is to cut 290 jobs and close its sewing factory in Rotherham, South Yorkshire, along with the cut of approximately 250 jobs in Spain in an effort to save up to £35 million.

These cost efficiencies were outlined by the fashion chain in November 2008, along with savings of around £15–20m through supply chain and infrastructure investments.

Burberry has also recently released its third quarter financial results which have revealed store sales are down 3%, along with weak performances in the US and Spain.

Angela Ahrendts, Burberry’s Chief Executive Officer, said of the company’s financial results: “Revenue at Burberry increased by 9% at constant currency (30% reported), in what remained challenging and volatile markets. There was an improved retail performance in December, albeit with continuing pressure on gross margin. As we continue to evolve our business model, we have today announced further cost efficiencies…

“These savings, coupled with our proven strategies, strong brand perception and conservative balance sheet position us to trade through the current difficult environment and emerge even stronger when the global economy recovers.”

The luxury fashion group is not the only one to feel the effects of the economy. Richemont, whose brands include Cartier and Montblanc, has recently reported sales at 7% lower than 2007 for the three months to December, with US sales down 24% in December.

According to Richemont, it is “currently facing the toughest market conditions since its formation 20 years ago”.