Debenhams reveals plans to make 2500 job cuts
Debenhams is planing to make 2500 redundancies as part of its latest cost-cutting measures to survive the Coronavirus crisis.
The retailer said that the job cuts, will be across both its retail and warehouse staff and have been made in order to give the company “every chance of a viable future”.
Debenhams said it was planning to make staff who hold sales manager, visual merchandise manager and selling support manager positions redundant.
The retailer also said that furloughed employees have been informed of the decision and will leave the company by the end of this week.
The recent job slashes are part of Debenhams’ plans to organise its store floor teams and cut costs as the COVID-19 pandemic continues to impact the business.
The department store chain added that it does not intend on shutting more stores as part of the latest restructure.
Debenhams said that while it has been trading ahead of forecasts since it reopened 124 stores after non-essential retail lockdown measures were eased on June 15, it needed to ensure store costs were “aligned” with a trading climate that remained volatile.
A spokesperson from Debenhams said: “We have successfully reopened 124 stores, post-lockdown, and these are currently trading ahead of management expectations,” Debenhams said in a statement."
“At the same time, the trading environment is clearly a long way from returning to normal and we have to ensure our store costs are aligned with realistic expectations."
“Those colleagues affected by redundancy have been informed and we are very grateful to them for their service and commitment to Debenhams."
“Such difficult decisions are being taken by many retailers right now, and we will continue to take all necessary steps to give Debenhams every chance of a viable future.”
Earlier this week, it was revealed that Frasers Group owner Mike Ashley is reportedly looking to acquire up to 30 Debenhams stores.