Burberry Shares Jump 18% With Workforce Layoffs

Today’s ESG Updates

• Burberry Cuts 17,000 Jobs: As part of a turnaround strategy, Burberry announces major global layoffs to cut costs and boost brand exclusivity.
• Germany Debates Supply Chain Law: Friedrich Merz urges scrapping the EU directive; unions and coalition leaders argue it’s key to protecting human rights.
• Shell Faces Climate Lawsuit: Dutch activists sue Shell over new oil and gas projects, claiming they breach a 2021 court ruling on climate responsibility.
• SAP Backs Green Textiles in Africa: SAP teams up with ARISE IIP to deploy cloud-based tools that help decarbonize Africa’s textile industry.

Burberry cuts 20% of workforce to save struggling business

Burberry share prices rose 18% on Wednesday with the announcement of 17,000 layoffs worldwide for the luxury fashion company. Burberry is in the early stages of a turnaround effort led by CEO Joshua Schulman, with the reduction in workforce aimed at increasing Burberry’s competition within the luxury fashion market. The job cuts will mainly affect the night shift workers at Burberry’s trench coat factory in Castleford, England. The British label narrowly avoided a loss for its 2025 financial year ending March 29 with an adjusted operating profit of 26 million pounds ($34.55 million). By reducing production and focusing on Britishness, Burberry’s strategy now relies on building excitement around exclusivity and brand value. Fashion businesses interested in building strong foundations within the current market can incorporate ESG solutions to appeal to the growing sustainability audience.

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Further reading: Burberry may cut 1,700 jobs globally to reduce costs as profits fall

Friedrich Merz insists on abolishing the EU Supply Chain Directive 

There is a divide within the German government on the strategy to boost the German economy. Friedrich Merz has made it clear that abolishment of the European Supply Chain Directive is the way forward to stop the choking of companies’ progression under diligence obligations. SPD Vice-Chancellor Lars Klingbeil opposes this, citing the coalition agreement that plans to replace the German law with a streamlined EU directive, not abolish it. Trade unions, represented by DGB President Yasmin Fahimi, maintain that keeping strong frameworks around human rights is essential and should not be tampered with. The EU Commission rejected Merz’s proposal and has delayed the implementation of the directive until 2028. 

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Further reading: Merz will Lieferkettengesetz abschaffen: Warum SPD und DGB widersprechen

Shell bashed by climate activists over continued oil and gas investment

Dutch energy giant Shell is facing fresh legal challenges over its continued involvement in the climate crisis through new gas and oil projects. The Dutch firm has recently invested in new oil and gas fields, which the Dutch arm of the environmental group Friends of the Earth, Milieudefensie, says is in breach of the company’s legal duty of care under Dutch law. The lawsuit is rooted in the 2021 landmark ruling that found Shell partially responsible for contributing to climate change and requiring change to rectify the issue. Shell responded by agreeing to the need for drastic climatic change practices but stated that legal actions like Milieudefensie slow the process and reduce cooperation. Legal action is expected within the next four weeks. 

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Further Reading: Shell Faces Fresh Legal Challenge Over Development of New Oil and Gas Fields

SAP chosen to boost the decarbonisation of the African textile industry 

ARISE Integrated Industrial Platforms (ARISE IIP), a company developing industrial ecosystems in Africa, has partnered with SAP to use digital tools like SAP S/4HANA Cloud, Sustainability Control Tower, and Environmental Health and Safety solutions to help decarbonize the textile industry. The partnering operation hopes to develop the textile value chain by integrating sustainable operations across the chain. The SAP cloud-based solution tracks and manages over 100 sustainability KPIs, which will allow for real-time ESG tracking data that can be used to alter and direct the textile industry’s practices. ESG tools can offer smaller businesses sustainability KPIs and solutions to upgrade industry chain operations. 

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Further reading: ARISE IIP chooses SAP cloud sustainability to boost Africa’s role in decarbonising the textile industry

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit:  Joshua Lawrence