// Arcadia to cut 500 jobs from its 2500-strong head office workforce
// The decision comes as the group seeks to cut costs following the coronavirus pandemic
Arcadia has reportedly confirmed plans to scrap 500 head office jobs in an effort to reduce costs following the impact of the Covid-19 pandemic.
The fashion group informed staff of the decision in an email on Wednesday that the restructuring will affect around 500 of its 2500-strong head office workforce.
The move is expected to affect teams including buying and design at Topshop, Miss Selfridge and Dorothy Perkins.
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Arcadia chief executive Ian Grabiner told staff that the group is continuing to live through an “unprecedented global crisis” as its stores and head office temporarily closed on March 20, Drapers reported.
He added that although Arcadia’s digital platforms provided it with much-needed sales, it was not enough to offset the loss of sales from its stores and franchise partners.
Arcadia has been reducing its store estate over the last few years but Grabiner said it needs to generate further cost savings across the company, and restructuring its head office is one of those initiatives.
Grabiner said Arcadia “deeply regrets the impact this will have on those individuals affected and will do everything it can to support them”.
During the coronavirus crisis, Arcadia furloughed almost all head office staff and closed its doors to the public.
Senior leadership and board members took a salary reduction of between 25 per cent and 50 per cent.
While stores have now reopened across the UK due to the easing of lockdown restrictions, the retailer will continue to be affected by the lack of demand and footfall.
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