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| Debenhams to slash 320 store management jobs in cost-cutting drive | Debenhams to slash 320 store management jobs in cost-cutting drive |
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| Debenhams is axing 320 store management jobs as part of a cost-cutting drive aimed at combatting falling sales. | Debenhams is axing 320 store management jobs as part of a cost-cutting drive aimed at combatting falling sales. |
| The retailer said on Thursday that around a quarter of its department store managers would go and that it would roll out a new structure by the end of March. | The retailer said on Thursday that around a quarter of its department store managers would go and that it would roll out a new structure by the end of March. |
| Debenhams shares crashed 24 per cent in January after it announced disappointing Christmas trading and a cautious outlook for the year ahead. | Debenhams shares crashed 24 per cent in January after it announced disappointing Christmas trading and a cautious outlook for the year ahead. |
| The 240-year-old department store has become the latest in a string of big-name retailers to announce job cuts or store closures in recent weeks. | |
| Marks & Spencer, Tesco, Sainsbury's, Asda, Morrisons and B&Q have all laid out plans to cut staff this year amid falling real wages and stiff competition from online and discount retailers. | |
| Debenhams said in a statement on Thursday: “As part of the implementation of the Debenhams Redesigned strategy a review of our store structure has been undertaken. | Debenhams said in a statement on Thursday: “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. | “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. |
| “The effect is that potentially 320 positions are at risk of redundancy - approximately 25 per cent of store management roles. | “The effect is that potentially 320 positions are at risk of redundancy - approximately 25 per cent of store management roles. |
| “We are currently consulting with individuals affected and will seek redeployment opportunities where possible.” | “We are currently consulting with individuals affected and will seek redeployment opportunities where possible.” |
| Debenhams announced last month that like-for-like sales fell 2.6 per cent in the 17 weeks to 30 December. | Debenhams announced last month that like-for-like sales fell 2.6 per cent in the 17 weeks to 30 December. |
| As a result of this, it said that – if the current volatile trading environment persists – profit before tax for the full year is likely to be in the range of £55m to £65m. | As a result of this, it said that – if the current volatile trading environment persists – profit before tax for the full year is likely to be in the range of £55m to £65m. |
| According to Reuters analysis, forecasters had largely been expecting a figure of around £83m. | According to Reuters analysis, forecasters had largely been expecting a figure of around £83m. |
| Department store rival, Marks & Spencer announced plans last week to close down 14 stores plunging 468 jobs into doubt. | Department store rival, Marks & Spencer announced plans last week to close down 14 stores plunging 468 jobs into doubt. |
| At the time, Martin Lane, managing editor of personal finance site money.co.uk, said the news was distressing for M&S employees but warned of further redundancies ahead at high street retailers. | At the time, Martin Lane, managing editor of personal finance site money.co.uk, said the news was distressing for M&S employees but warned of further redundancies ahead at high street retailers. |
| “This is the third time in a matter of weeks we’ve heard of job cuts impacting some of the UK’s biggest stores," he said. | “This is the third time in a matter of weeks we’ve heard of job cuts impacting some of the UK’s biggest stores," he said. |
| "The retail giants are facing turbulent times with competitive pressure from discount rivals and online sales. | "The retail giants are facing turbulent times with competitive pressure from discount rivals and online sales. |
| Earlier in January, Britain's biggest retailer, Tesco, said it would slash 1,700 management jobs at its large stores. | Earlier in January, Britain's biggest retailer, Tesco, said it would slash 1,700 management jobs at its large stores. |
| Sainsbury's also announced its own shake-up last month, putting thousands of jobs at risk. | Sainsbury's also announced its own shake-up last month, putting thousands of jobs at risk. |
| The retailer said it was consulting with staff over plans that will see the number of senior in-store posts slimmed down and replaced with fewer management roles. | The retailer said it was consulting with staff over plans that will see the number of senior in-store posts slimmed down and replaced with fewer management roles. |