Carpetright is to cut more than a quarter of its head office staff as the loss-making chain it looks to save more than £20m a year.
About 70 roles at its Purfleet, Essex head office and field management jobs will be lost.
In-store staff – recently hit by a cyber attack that left them unable to process orders – are not part of the cost-cutting, which follows it hiring consultants Teneo.
The jobs will fall in areas such as IT, warehousing and distribution, resulting in lower costs of £22m.
‘While we have worked tirelessly to navigate our current challenges, we understand the impact this restructure will have on valued members of our team. Our top priority remains supporting those affected through this process,’ says Kevin Barrett, chief executive of Carpetright parent Nestware Holdings.
‘As with many businesses, we face ongoing challenges in today’s tough economic climate. We’ve carefully examined our performance against operating costs, leading us to make difficult decisions to ensure the future success of our brand.
‘Unfortunately, this means reducing our central payroll costs. Whilst every effort has been made to seek the best solution to our current situation, we are aware that valued members of our team will be impacted.’
Carpetright’s most recent accounts showed underlying losses of £23.4m in the 14 months to January 2022, down from £53m in the 18 months to October 2020 (its financial periods were changed following its 2019 takeover).
