Ted Baker cuts HQ jobs as it seeks to get back on track
Feb 26, 2020
Fresh from reports that Ted Baker is seeking to sell its HQ to generate cash, news came Wednesday that the company is cutting some head office jobs with 102 posts being made redundant and another 58 current vacancies to be left unfilled.
The job cuts come after the firm launched a review late last year aimed at boosting efficiency, stripping out costs and re-igniting meaningful sales growth at the crisis-hit company.
It has also concluded as part of that review that it needs to increase its customer focus, improve product relevance, broaden its product lines and improve its e-tail ops.
Acting CEO Rachel Osborne said of the job cuts that “a key area of focus for management following the cost review is to reduce our office cost base, in particular by simplifying and de-layering the group's organisational structure. Earlier this month, the Executive Committee was restructured, with the number of members reduced from 13 to nine. The group has today announced proposals to reorganise key head office and business functions to align with the new simplified management structure”.
Cutting these posts should reduce the firm’s costs by £5 million in the current financial year, and by £7 million on an annual basis in future. But these savings will incur a cash restructuring charge of £2.7 million, which will be taken in the current year.
Osborne added that “2019 was a very challenging year for Ted Baker, but I am confident about the future growth prospects for the group. The strategic priorities we are announcing today will re-energise the Ted Baker brand and improve our customer proposition, ensuring the long-term success of the business. The board and I believe that we will only realise Ted's long-term potential by transforming the way the business operates and the actions we are announcing today are important steps in that transformation.”
Copyright © 2020 FashionNetwork.com All rights reserved.