Burberry transformed from a British icon to global powerhouse under two American CEOs but job cuts are incoming after sales slumped as the brand forges a new identity.

Burberry shares surged 18% on Wednesday after the British luxury brand announced plans to shed 1,700 jobs or around a fifth of its global workforce to cut costs to help revive its performance.

Burberry shares surged 16% in London trading Wednesday after the British luxury brand announced plans to cut around 1,700 worldwide jobs by fiscal 2027 as it continues its restructuring efforts.