Hundreds of job cuts are on the cards at Pandora following a profit warning yesterday, sending its shares plummeting.
The jewellery retailer announced yesterday that its profits and sales were down in the second quarter, dropping its prediction for the full year from sales growth of 10 per cent to between four and seven per cent.
In an effort to offset the slower growth, which is also expected to see gross margins drop three per cent to around 32 per cent, Pandora announced that 397 employees out of its 27,000 will be let go.
Alongside the job cuts, it will aim to protect profitability by introducing a centralised operations and supply chain structure, while pumping more resources into ecommerce.
These measures are anticipated to reduce annual costs by £150 million.
“Pandora has nearly doubled in size the past three years, and our ways of working have also grown rapidly and resulted in different organisational set-ups in different parts of the company,” chief executive Anders Coldig Friis said.
“The adjustments we announce today will reduce complexity and free up resources that we can add to our strategic priorities.”
The news sent Pandora’s share prices plummeting nearly 20 per cent in morning trading.