Store closures and staff furloughing have become the most commonly heard terms in recent times, but no matter however common these words have become they still don’t sound good to hear.
And, therefore, when British retailer Debenhams, reportedly revealed its plans to cut 2,500 more jobs, it indeed was worrying.
The decision comes on top of the 4,000 head office jobs cuts that the retailer had announced back in May 2020.
Adding 2,500 more would now mean that Debenhams has cut one-third of its workforce. This time, people holding the positions of sales manager, visual merchandise manager and selling support manager are going to be impacted the most.
The latest round of making jobs redundant is being seen as a part of retailer’s cost-cutting measures to combat the coronavirus crisis.
Meanwhile, the retailer has said that all the 2,500 people, who are currently on furlough, have been informed of the decision and are expected to leave the company before the weekend.
The retailer also said that though it has been trading much ahead of its forecasts ever since its stores reopened, it has to ensure that store costs align with the trading climate and therefore such hard decisions become mandatory.
Late last month, there was news of investment bank Lazard being appointed to oversee a process to determine the retailer’s future, which include the existing owners continuing to run the business, a joint venture or maybe sale to a third party.
Debenhams is known for its clothing and furniture and generates revenue of £2,277.0 million.
Every retailer is making strategies to survive the crisis and Debenhams too has its own plans. We will keep you updated about its next move!
