The Warehouse Group to cut jobs due to declining sales performance

The Warehouse Group, one of New Zealand's prominent retail entities, is set to undergo significant organisational restructuring, potentially leading to job cuts at its head office. 

According to recent announcements, details of the restructure plan are scheduled to be unveiled next week, raising concerns among the company's workforce. 

A spokesperson for The Warehouse Group confirmed that upcoming changes will focus on reshaping the organisational structure to enhance brand performance. They emphasised that these adjustments are primarily targeted at roles within the head office, where more than 1000 employees are currently employed. 

Notably, frontline team members across the group's stores, including The Warehouse and Noel Leeming, are expected to remain unaffected by the impending restructuring. 

The decision comes amid financial challenges faced by The Warehouse Group, as highlighted in recent financial reports. The company anticipates a decline in sales by 6 to 7% compared to the previous year, reflecting ongoing economic pressures. 

Additionally, earnings before interest and taxes are projected to range between $22 million to $30 million, a significant drop from the $83.4 million reported in the preceding fiscal year. 

This financial strain follows a $24 million loss recorded in the first half of the fiscal year, prompting the resignation of former Chief Executive Nick Grayston in May. The restructuring efforts underscore The Warehouse Group's strategy to navigate turbulent market conditions and realign its operations for sustained growth. 

As the company prepares to disclose further details next week, stakeholders and employees alike await clarity on how these changes will reshape the organisation's future trajectory. 

The Warehouse Group remains committed to its core retail operations and aims to strengthen its market position amidst evolving consumer demands and economic uncertainties.