Struggling retailer Target to cut hundreds of jobs, according to reports
Fairfax Media reports hundreds of staff are to be let go at the retail giant’s HQ in Geelong, Victoria.
The Westfarmers-owned retailer this week admitted it is undergoing a major operational review, in a clear bid to cull costs.
Earlier this year, Target cut its earnings forecast to $140m- $160m for ’12-13 financial year.
The discount retailer confirmed major changes were afoot in a statement yesterday:
“We’re reviewing all aspects of the business, and have taken a number of actions to turn around Target’s performance.”
“There have already been a number of team changes as part of this review, and more changes are likely.
“However, we will work these through with the Target team, and they will be kept informed of any changes that may arise.”
Target’s Geelong operation currently employs 1000.
In May, Westfarmers MD Richard Goyder warned earnings for 12-13 financial year would be “disappointing”, adding appropriate action would be taken to improve its bottom line.
Poor sales were blamed on the late start to winter season and increased costs due to restructuring.
Today, Deloitte warned Aussie retail was in for a tough ride this year, with growth experienced in early 2013 unlikely to continue.
Westfarmers shares fell -0.92% to $37.6 today.