Debenhams to cut 2,500 jobs

Debenhams is reportedly planning to cut 2,500 staff throughout its stores and warehouses in a measure to reduce costs amid the Covid-19 pandemic.

The department store chain is scrapping the roles of sales manager, visual merchandise manager and selling support manager as it looks to streamline its shopfloor teams, according to Retail Week.

Debenhams reduces workforce in cost-cutting drive

“We have successfully reopened 124 stores, post-lockdown, and these are currently trading ahead of management expectations. At the same time, the trading environment is clearly a long way from returning to normal and we have to ensure our store costs are aligned with realistic expectations,” Debenhams said in a statement.

“Those colleagues affected by redundancy have been informed and we are very grateful to them for their service and commitment to Debenhams. Such difficult decisions are being taken by many retailers right now, and we will continue to take all necessary steps to give Debenhams every chance of a viable future.”

In late July, it was reported that Debenhams could be put up for sale as it looks to exit its ‘light touch’ administration.

According to The Guardian, the retailer has appointed investment bank Lazard to oversee the process and hopes to find a buyer before September. Possible outcomes include its owners retaining the business, new joint-venture arrangements with existing and potential new investors, or a sale to a third party.

The firm joins a growing list of UK fashion companies to announce job cuts in recent months including John Lewis, Marks & Spencer and Harrods.

Photo credit: Debenhams

 

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