Redundancies come amid financial challenges for retailer
The Warehouse Group is planning to let go of some employees as part of a "redesign" of its organisational structure, according to reports.
Employees from the retailer's head office, which has over 1,000 staff members, will be among those affected by the layoffs, 1News reported.
"This redesign will not affect any frontline team members and is about shifting our focus to our brands and driving our performance," the spokesperson told the news outlet.
Store employees at The Warehouse and Noel Leeming will also not be affected by the planned workforce changes, according to the report.
No official numbers have been released regarding the planned redundancies, but 1News reported that the retailer has already informed staff of its plan as early as last week, with further details expected this week.
‘Tough retail market’ for Warehouse Group
The organisational restructure comes after the retailer posted a net loss of $23.7 million for the six months ending January 2024.
In a statement, the group's total continuing sales hit $2.633 billion in the first half of financial year 2024, down 4.9% compared to the same period last year.
The Warehouse Group said it is expecting "tough retail market conditions to continue."
"We believe the macro-economic climate will remain difficult, and it is challenging to predict how cautious consumer spending will impact sales across all our brands," said The Warehouse Group CEO Nick Grayston in a statement.
The Warehouse Group now adds to the growing list of employers in New Zealand that are restructuring and laying off employees this year.
The Employers and Manufacturers Association (EMA) said calls for support from employers on restructuring and redundancy have increased 70% year-on-year in March.
"Our support team is receiving an average of 30 calls a week from businesses looking for help around restructuring and redundancy," said EMA Head of Advocacy Alan McDonald in a statement.
