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May 28, 2020
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Debenhams cuts 'hundreds' of head office staff - sources

By
Reuters
Published
May 28, 2020

British department store group Debenhams has cut “hundreds” of head office jobs as it slims down its administrative functions to support a smaller business in the future, two people with knowledge of the situation told Reuters.


Debenhams



One of the people said about 160 jobs had gone from Debenhams’ merchandising department and a similar number from buying. Other jobs have gone in design and human resources.

Last month Debenhams went into administration for the second time in a year, seeking to protect itself from legal action by creditors during the coronavirus crisis that could have pushed it into liquidation.

The cuts come as the company prepares to reopen in a retail market that's even tougher than the unforgiving market it faced before the pandemic led to the lockdown.

The fact that the latest round of job cuts are in admin highlights how different the overall business will be once its stores do start trading again. More of the stores are likely to end up closing than it had originally planned and that means that as well as shop floor jobs, those buying and merchandising teams could have much less to do. Their travel time will be reduced as fewer buyers undertake trade show and factory trips in the short-to-medium term. And the company could also see some consolidation in terms of the breadth of its offer.

The cuts also show how cash remains tight and retailers will continue to do everything they can to conserve cash well into the future.

Additional reporting by Sandra Halliday

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