Hammerson to axe jobs as part of cost cutting strategy

Hammerson
Hammerson’s net debt stood at £1.9 billion at the end of June

Hammerson is expected to scrap a chunk of its workforce as chief executive Rita-Rose Gagné seeks to cut costs.

All 250 staff working at the head office of the shopping centre giant in London’s King’s Cross and its office in Reading have been placed in a consultation exercise.

Up to 40 roles across a variety of functions are expected to be at risk of redundancy.

READ MORE: Hammerson completes Grand Central Birmingham upgrades

The shopping centre owner raised £552 million last August through an emergency rights issue priced at a 95 per cent discount, and a further £274 million through the sale of its stake in European business VIA Outlets.

This year, another £330 million was raised through the sale of seven retail parks to private equity giant Brookfield.

Hammerson’s net debt stood at £1.9 billion at the end of June. The company paid its 538 staff £48.9 million last year.

Gagné revealed plans in August to slash Hammerson’s costs by between 15 per cent and 20 per cent by 2023.

“We are working on an organisation review, which will create a more agile and efficient business focused on our assets, occupiers and customers,” Hammerson said.

Hammerson’s UK and Ireland managing director Mark Bourgeois said last week that he will be leaving the company.

His responsibilities will be split between Harry Badham and Grégoire Peureux, both brought in by Gagné over the past year.

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