Department store Myer has confirmed it will significantly slash its staff count, as the fallout from the tough trading environment continues.
The retailer, which currently employs around 13,000 staff, said the cuts will affect mainly its store support functions, including services such as marketing and events, IT, HR, and merchandise and supply chain.
In a statement to market today, the company said the retail sector is experiencing the toughest conditions seen in over 25 years, and will be rebasing its cost structure to align to the current operating conditions.
In particular, Myer cited higher occupancy costs, higher wage costs, and the inflation of other outgoings, including utility charges, as key factors in its decision.
Despite the impending redundancies, Myer also said it was “important to note” that its investment in customer service, the development of its brands and its omni-channel strategy are “quarantined from the impact of the review”.
Myer CEO Bernie Brookes added that a number of employees will also be redeployed to the areas of the business where additional resources are required.
“While these decisions are never easy, they are prudent and necessary to ensure our business is attuned to our operating environment. We regret the impact on those team members affected and have provided assistance to them in terms of severance payments and support for job transition,” he said.
“We have determined a support structure that will take the business forward and underpin our investment in our core offer, including continuing the investment to improve customer service, enhancing our merchandise offer, our loyalty program, delivering our omni-channel offer and optimising our store network.”