390 jobs axed at New Look

1942
390 jobs

390 jobs have been axed at fast fashion retailer New Look amid efforts to re-balance levels of senior and junior staff.

In a wider redundancy consultation which affected around 1000 of the retailers 19,000 staff members, 390 deputy store managers and sales managers were dismissed.

430 staff were reportedly retained while 100 quit the business due to natural turnover and a further 20 took a deferred redundancy and will be let off in the future.

Despite the sweeping job losses, New Look is set to hire 250 new staff members in efforts to redress the balance.

“Following a review launched last year, we completed a consultation process over the summer with affected staff so we could assess the level of management roles in our UK and Republic of Ireland stores,” a spokesperson said.

“We carried this out to simplify and improve the management structure across our UK and Republic of Ireland store estate so that we are better placed to meet the needs of our customers.

“We worked closely with all of the affected staff to inform of the proposed changes and to consult on potential options for continuing their employment with us.”

The news comes months amid numerous high-profile boardroom changes and rising concerns over financial performance.

In its last reported quarter the retailer saw profits drop 60 per cent, following a similarly disappointing fiscal year.

Its struggling performance led to former chief executive Anders Kristiansen abruptly stepping down. Former New Look boss Alistair McGeorge was reported earlier this month to have returned to the retailer, leading trading meetings and weekly director meetings.

Click here to sign up to Retail Gazette‘s free daily email newsletter