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Debenhams to axe 320 jobs in cost-cutting drive

RBR Staff Writer Published 09 February 2018

British multinational retailer Debenhams is planning to cut 320 store manager roles amid cost cutting drive and poor sales.

The move is part of the company’s £10m cost cutting plan that was announced last month.

The company stated that it aims to redeploy the affected staff, but job cuts do not mean store closures. The number of job cuts is claimed to be about 25% of the company’s total store management stores.

Debenhams issued a profit warning last year, after a weak trading during the Christmas period.

The company is trying to bring down complexity of management positions, coupled with changes to work culture, which could significantly bring down costs.

Apart from the £10m cost cutting, it is also mulling to add another £20m in savings, under the CEO Sergio Bucher’s leadership.

Deberhams said: “The review has identified significant cost savings by reducing the complexity of management roles in stores as well as processes to optimise and standardise ways of working.

“We are currently consulting with individuals affected and will seek redeployment opportunities where possible. We envisage our new structure being fully in place by the end of March."

Last year the company stated that there are 10 stores under review for closure if they turned unprofitable. Two stores in Eltham and Farnborough were closed at the end of January, under the review, which resulted in 87 job cuts.

Other retailers including Tesco, Sainsbury’s, Morrisons and Marks & Spencer are also focusing on job cuts.

Image: Debenhams at Marylebone Lane. Photo: Courtesy of Philafrenzy/Wikipedia.org.