Fashion retailer Debenhams has announced a new cost cutting drive that could put 320 positions at risk of redundancy.
The firm said the employee reshuffle will improve the company’s finances, after the group’s shares plunged by 20% due to a ‘disappointing’ Christmas trading period.
A profit warning was issued due to falling UK like-for-like sales, which exclude store openings and closures, which dropped 2.6% during the period. Overall group sales down 1.8 per cent.
Debenhams said it was accelerating its turnaround strategy to produce around another £10m in cost savings earmarked for this financial year.
A spokesperson for the company said: “As part of the implementation of the ‘Debenhams Redesigned’ strategy a review of our store structure has been undertaken. 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.”