Wesfarmers-owned retailer cuts over 250 jobs as sales slumps
Target slashed 260 jobs on June 12 as part of an organisation restructure to “help restore business performance.”
The job cuts will be made at Target’s support centre in Geelong, Victoria and regional support locations, it said in a statement today, blaming “sales and profit under-performance.”
After completing a review of store support functions, management will implement new organisational structure to help restore business performance.
“This is an extremely difficult time for our team and, unfortunately, we’ll be losing many great team members,” Target MD Stuart Machin said.
“With our sales and profit under-performance over the past 12 months, we have needed to act in order to get our costs under control and the right store support structure in place.”
“With our sales and profit under-performance over the past 12 months, we have needed to act in order to get our costs under control and the right store support structure in place.”
Target’s Geelong operation currently employs 1000.
Staff were cut in contract procurement, marketing, corporate affairs and store design, reports
The Age.
The restructure comes after the discount retailer cut its earnings forecast to $140m- $160m for ’12-13 financial year.
Possible staff cuts first surfaced last week.
Machin said that team members leaving the business will receive their full entitlements, and will also be given support and information services, including career transition support.
Target will also explore redeployment opportunities wherever available.
Wesfarmers also the owner of Coles, shares slumped 1.16% to $37.4 today.
