26th Feb 2020 10:35
(Alliance News) - Ted Baker PLC on Wednesday unveiled plans to cut 102 head office jobs, with the troubled retailer also removing 58 posts which are currently unoccupied as it looks to get back on track after a "challenging" 2019.
The company said it trimmed the size of its executive team to nine, from 13, earlier in February, in a bid to reduce its "office cost base".
Ted Baker has now gone a step further, as it looks to "reorganise key head office and business functions to align with the new simplified management structure".
Ted Baker added: "Combined, this is expected to result in a reduction of 102 roles and the removal of a further 58 posts which are currently vacant.
"The reduction in our office headcount is the first of a range of expected initiatives to improve the efficiency and cost structure of the group."
The retailer expects to incur a one-off restructuring charge of GBP2.7 million, though it predicts it will save GBP5 million in costs in the current financial year ending January and by GBP7 million thereafter on an annualised basis.
Acting Chief Executive Rachel Osborne said: "2019 was a very challenging year for Ted Baker, but I am confident about the future growth prospects for the group. The strategic priorities we are announcing today will re-energise the Ted Baker brand and improve our customer proposition, ensuring the long-term success of the business.
"We recognise that to support these priorities we need to become more efficient, simplify our structure and reduce our cost base to more sustainable levels for the future. The changes we are announcing today are difficult because colleagues across the business have been working hard in what has been a challenging period for Ted Baker. I would like to thank all of them for their commitment and the passion they have shown for the business."
It has been a tough time for Ted Baker since the departure of its founder early last year amid accusations of inappropriate hugging.
In January, accounting firm Deloitte found the retailer had overstated the value of its stock by GBP58 million. Ted Baker acknowledged at the time this was "materially higher" than its December estimate of an overstatement of between GBP20 million and GBP25 million.
Two top-level roles at the once high-flying chain have been up for grabs since December, when Lindsay Page stepped down as chief executive and David Bernstein as chair.
Osborne, formerly chief financial officer, became acting CEO and Non-Executive Director Sharon Baylay has become acting chair.
Ted Baker shares were 3.2% lower at 304.20 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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