15 Feb 2017

Warehouse Group consults head office staff over changes

8:25 am on 15 February 2017

The Warehouse looks set to sack an unknown number of its head office staff as it cuts costs to counter a slip in earnings.

The Warehouse shop in Auckland

The Warehouse is looking to change its business structure. Photo: 123RF

The country's biggest retailer has confirmed it is talking to staff over changes to its business structure.

It is talking to support staff in the marketing, finance and human resources areas about changes, a company spokeswoman has confirmed.

She said some jobs may be dis-established, and new roles created, but would not give any details on numbers.

The changes do not affect staff at The Warehouse's various shopping chains.

Last month it said it was going to restructure and simplify its back room operations, improve efficiency and remove significant costs.

Among the changes already made have been a single chief executive for the Red Sheds and Warehouse Stationery businesses, and another single head for the Noel Leeming and Torpedo7 shops.

Before Christmas, the company cut its adjusted profit forecast by 10 to 15 percent to between $38.5 million and $41 million because of weak sales.

That compares with the previous $45.6 million.

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