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Carpetright has announced restructuring plans across a number of departments to “better support regional stores and digital plans”.
A staff reduction of just over 25% will affect the company’s central support centre and field management teams leading to approximately 70 job losses.
The company stated that this reduction in central support roles reflected the depletion in the retail portfolio, and revenues, that the business has experienced over the past eight years.
Following a detailed review of the business, cost reduction efforts have been outlined and will be implemented across IT, warehousing and distribution, central support and field management.
By taking these actions, the company estimates it will be able to remove about £22m from the cost base.
Alongside this, Carpetright will continue investment into its retail and customer experience over the next 12 months.
Kevin Barrett, CEO of Nestware Holdings, said: “While we have worked tirelessly to navigate our current challenges, we understand the impact this restructure will have on valued members of our team. Our top priority remains supporting those affected through this process.
“As with many businesses, we face ongoing challenges in today’s tough economic climate. We’ve carefully examined our performance against operating costs, leading us to make difficult decisions to ensure the future success of our brand. Unfortunately, this means reducing our central payroll costs. Whilst every effort has been made to seek the best solution to our current situation, we are aware that valued members of our team will be impacted.”
