// Victoria’s Secret to cut 850 jobs at HQ
// Owner L Brands aims to accumulate £304 million in annual savings from the job cuts
Victoria’s Secret parent company L Brands has announced it will cut 15 per cent of its head office workforce in an effort to reduce overhead costs.
The retail group will lay off 850 employees at its Columbus, Ohio headquarters.
L Brands aims to accumulate $400 million (£304 million) in annual savings from the redundancies, $175 million (£132 million) of which will be achieved in financial year 2020.
Other cost-cutting measures include closing stores, cutting down inventory and negotiating with landlords for rent relief.
The company expects net sales for the second quarter to be down 20 per cent compared to last year, exasperated by a 40 per cent decline at Victoria’s Secret.
L Brands is currently drawing up plans for Victoria’s Secret to operate as a separate, standalone company after a majority stake was sold to investment firm Sycamore Partners for $525 million (£407 million) in February.
“Decisions relating to our workforce are incredibly difficult and not taken lightly, but these actions are necessary to best position our company for the long-term,” L Brands chief executive Andrew Meslow said.
In May, Victoria’s Secret announced it would permanently close 250 stores in North America over the next few months, throwing UK stores into doubt.
Victoria’s Secret’s UK arm fell into administration on June 5, putting over 800 jobs at risk. It drafted in Deloitte advisers to assess the impact of Covid-19 on business. The firm said it would conduct a “light touch” administration as it seeks a potential buyer.