Burberry said Wednesday (July 15) it will cut about 500 jobs globally.

With 150 office roles due to go in its home British market.

The cuts come as the luxury label forecast a slow recovery in demand, particularly from high-spending tourists.

The layoffs were announced alongside a 45% drop in first-quarter like-for-like sales.

Store closures in Europe and the U.S. due to lockdowns, and a lack of spending by long-haul travelers, were blamed for that.

Chief executive Marco Gobbetti said it would take time for demand to return to pre-crisis levels.

But he said he was 'encouraged' by a sales revival towards the end of June.

The job cuts will affect about 5% of the global workforce.

And make yearly savings of just under $70 million.