Luxury Human Resources in 2025 is a fascinating mix of tough restructuring, employee empowerment, and bold diversity initiatives. Here’s a snapshot of what’s making headlines and stirring the industry.
Burberry’s Bold Workforce Reshape Burberry has made a striking move by announcing plans to cut about 1,700 jobs, nearly 20% of its global workforce, aiming to reboot its business amid sharp financial challenges. The British luxury house suffered a £3 million operating loss and a 17% revenue drop recently.
CEO Joshua Schulman, who came from leadership roles at Coach and Jimmy Choo, is spearheading a strategic reset that seeks to bring Burberry back in line with rivals by focusing on its British heritage and signature products like trench coats and scarves. The cuts mostly impact office roles and include cancelling a night shift at their UK trench coat factory to curb overproduction.
Burberry’s cost-saving goal is to save £100 million annually by 2027 through streamlining procurement, real estate, and people costs. Products, marketing, and operational simplification aim to make the brand more agile and competitive in a rough luxury market. Schulman expresses cautious optimism, believing the brand’s best days lie ahead.
Empowering Employees as Internal Entrepreneurs Across industries, leading companies in 2025 aren’t just managing employees; they’re empowering them to act as entrepreneurs within the company. This means giving them ownership over projects, profit-sharing models, and the freedom to experiment and innovate.
Laura Beaulieu, VP Marketing at Holistiplan, explains this approach boosts innovation and retention by flipping the old model where employees felt like cogs in the machine. Now, flatter structures and decentralized decision-making energize teams and speed business growth. Examples include internal marketplaces for pitching new ideas and skills-based promotions rather than just tenure.
This culture of ownership is translating into sharper agility, deeper engagement, and sustained growth, showing the luxury sector and beyond that treating people like innovators is the new secret sauce for success.
LVMH’s HR New Deal and Inclusion Drive The luxury giant LVMH has launched its “HR New Deal,” a comprehensive five-point plan focused on learning, career paths, engagement, attracting talent, and leadership development. This strategic play aims to foster individuality and diversity throughout the organization.
Some tangible outcomes include increasing women in key positions close to 50%, boosting the number of employees with disabilities, and mandatory anti-discrimination training for all recruiters. Health and safety take center stage as well, with a culture that encourages safe workspaces and well-being.
LVMH also highlights stories like female employees thriving at 24S, its Paris-based digital fashion platform, celebrating gender diversity and digital excellence.
Why This Matters These stories from the luxury HR world aren’t just corporate headlines; they’re signals of deeper shifts in work culture:
- Burberry demonstrates that luxury brands are not immune to economic pressures and sometimes must make hard choices to survive and evolve.
- Empowering employees with ownership and trust is clearly a winning formula for fostering innovation and loyalty.
- Diversity and inclusion remain front and center for the biggest luxury groups as a business imperative tied to culture and success.
Collectively, they show that luxury companies in 2025 are not only redefining luxury products but also crafting the future of work itself — one that balances financial discipline with human-centered innovation.
Bottom Line: In this year’s luxury HR trends, resilience meets revolution. Brands that combine smart cost-cutting strategies, empower their people creatively, and prioritize inclusivity will lead the charge in a changing global market. The luxury world’s great transformation is unfolding, and its workforce is at the heart of the story.
References:
- https://www.thehrdigest.com/why-burberrys-1700-job-cuts-signal-a-luxury-market-shift/
- https://www.instagram.com/p/DJ1MsMrPXZo/
- https://hr.economictimes.indiatimes.com/amp/news/workplace-4-0/talent-management/burberry-to-cut-about-20-of-global-workforce-in-turnaround-drive/121169574
- https://www.humanresourcesonline.net/burberry-s-sweeping-cost-saving-push-to-see-about-1-700-roles-being-impacted-globally
- https://www.ceotodaymagazine.com/2025/05/what-successful-businesses-are-doing-differently-in-2025/
- https://teaforteaching.com/category/instructional-communication/
- https://www.lvmh.com/en/commitment-in-action/for-people
- https://www.astralcodexten.com/p/book-review-selfish-reasons-to-have
