Woolworths cuts 500 jobs, slows store roll-out, explores Ezibuy sale

Jessica Gardner
Jul 25 2016
AFR
Woolworths will incur restructuring costs of almost $1 billion after the retail giant said a new operating model would lead to it slashing 500 jobs, slowing its store roll-out and closing underperforming outlets.
The company has also separated its Big W department store chain from online retailer Ezibuy, allowing it to explore a possible sale of Ezibuy.
Chief executive Brad Banducci, who started in the role in February, said sales per square metre and ‘Return On Funds Employed’ would be introduced as long-term performance indicators of how stores were performing under a new operating model.
About 500 roles will be permanently removed from Woolies’ support office and supply chain, while 1,000 people will be moved “directly into our businesses to improve accountability and help us better support our store teams and customers,” Mr Banducci said in a statement.
“Today’s announcement demonstrates both the progress we are making and our absolute commitment to act quickly to rebuild the business by doing the right thing by our customers, shareholders, team and suppliers,” he said.
restructuring costs of $959 million ($571 million non-cash) or $766 million after tax to be recognised in 2015-16.
The company said its earnings before interest and tax from continuing operations, before signifcant items, would come in between $2.55 billion and $2.57 billion for the year.
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