Harvey Nichols to axe dozens of jobs in head office overhaul
It understood the move will affect around 60 London-based employees, subject to a consultation process.
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Harvey Nichols has launched a major shake-up of its operations, with plans to cut dozens of head office jobs.
The historic department store chain said less than 5% of workers are at risk of redundancy as result.
It understood this will affect around 60 London-based employees, subject to a consultation process.
We are taking action to simplify and strengthen our business by optimising our cost structure to operate more efficiently across our support team
The group, which is owned by Hong-Kong based Sir Dickson Poon, said it will seek to offer impacted workers roles in other parts of the business.
Rivals, such as Selfridges and John Lewis, have also cut jobs over the past year amid efforts to reduce operating costs.
Bosses at the company said the overhaul comes after the retailer came under pressure from recent rampant inflation, cost increases and the end to tax-free shopping for tourists in the UK.
The retailer, which was founded in 1831, has stores in London, Leeds, Edinburgh, Manchester, Birmingham, Bristol and Dublin. It also has a dedicated beauty store in Liverpool as well as international sites.
Pearson Poon, Harvey Nichols’ vice chairman, said: “We are taking action to simplify and strengthen our business by optimising our cost structure to operate more efficiently across our support team.
“Coming out of Covid has been very difficult for the wider retail industry in the UK, which faced increased inflation, cost pressures, and the loss of tax-free shopping.
“We are making difficult decisions today to ensure we are well positioned for success in a continuously evolving retail environment.”
On Tuesday, the luxury firm also confirmed it saw higher sales over the previous financial year and cut its losses.
Accounts for the year to April 1 2023, which are due to be published soon, are set to show revenues grew by 13% to £216.6 million as it continues its recovery following the impact of the pandemic and cost-of-living pressures.
It also recorded a pre-tax loss of £21.3 million for the year, down from £30.4 million a year earlier.
Last year, the group’s boss Manju Malhotra stepped down from the company after reported tensions over its growth strategy.
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