Ted Baker set ‘to cut 500 jobs’ at stores and HQ
Ted Baker looks set to cut about a quarter of its UK workforce after the coronavirus pandemic added to its financial difficulties.
The fashion retailer did not confirm the number, but there are reports 500 store and the head office jobs will go.
“We have not taken this decision lightly and would like to thank all our colleagues for their hard work,” a spokesperson said.
The move is intended to saved about £6m by the end of the year.
Both part-time and full-time roles will be affected. About 200 jobs will go at the Ugly Brown Building, its London headquarters, with the rest from its 46 shops across the UK and Europe, as well as many store concessions.
Ted Baker had been struggling before the coronavirus pandemic hit the UK. The firm reported a pre-tax loss of £79.9m in the year to 25 January, in comparison with a £30.7m profit the previous year.
The High Street brand confirmed that the latest job cuts came as part of a “continuing transformation plan”.
“We have been assessing the appropriate level of staffing across our business and are in consultation with affected colleagues,” they said.
It had already announced 160 job cuts in February, which mostly affected office workers.
A turnaround plan for the business was launched in June by new chief executive Rachel Osborne. It includes broadening the retailer’s offer to make its clothing “more relevant” to everyday occasions and to sell more accessories and shoes.
High Street woes
At the onset of the coronavirus pandemic Ted Baker said it was considering other cost savings.
Other High Street retailers have announced cost-cutting measures as the coronavirus crisis has hit trade.
Marks & Spencer is reportedly planning to announce hundreds of job cuts this week. According to Sky News reports, it is set to announce redundancy plans in days.
Its food stores remained open throughout the lockdown. But trade in other parts of the business was severely affected, and in May it said clothing sales had been down by more than 80% year-on-year at the lowest point.
On potential job cuts, a spokesperson said: “We don’t comment on speculation. If and when we have an announcement to make, our colleagues will be the first to know.”
Any announcement by M&S would follow job cuts by two of the UK’s biggest High Street retailers in recent weeks. Boots said that 4,000 jobs will go, while John Lewis is shutting down eight stores, putting 1,300 jobs at risk.
Other lay-offs announced during the pandemic have included:
- Up to 5,000 job cuts at Upper Crust owner SSP Group
- Up to 12,000 jobs at British Airways
- Up to 700 jobs at Harrods
- About 600 workers at shirtmaker TM Lewin
- 1,900 jobs at Café Rouge-owner Casual Dining Group
- 1,000 jobs at Pret A Manger
- 1,700 UK jobs at plane-maker Airbus
- 1,300 crew and 727 pilots at EasyJet
- 550 jobs are going at Daily Mirror publisher Reach