Difficult trading conditions have forced leading fashion retail group Arcadia to make a large proportion of its head office staff redundant, it was revealed today.
Of the 3,000 employees spread over Arcadia’s five head offices, 90 workers, most of whom currently operate in support services roles, are now set to lose their jobs.
The trader employs over 45,000 people worldwide through its popular high street stores, which include Topshop, Burton and Dorothy Perkins, but no store staff roles will be lost as a consequence of this action.
A spokesman for Arcadia confirmed: “This is as a result of harsh trading conditions and looking at being as efficient as possible in difficult times whilst continuing to invest in the business to the same level as before.”
Arcadia has a strong record as a job creator thanks to its rapid expansion over the last few decades, but CEO Sir Philip Green also has a reputation for tight cost control and this move will be seen by many as a prudent attempt to cut expenditure.
Last year Green undertook an official review on behalf of the coalition government looking at ways to cut departmental spending and improve efficiency in Westminster, with a subsequent report being published in October.
Today’s announcement shows how taxing the current trading conditions are for even the most successful British retailers, with the latest figures from the British Retail Consortium showing a further drop in overall retail sales during August.
In the year ending August 28th 2010 Arcadia made a pre-tax profit of £213.2 million, a year-on-year increase of 6.4 per cent, but as with many traders it seems 2011 has proved far more challenging for the firm.