Wesfarmers Chairman Ken MacKenzie has remained silent on the recent axing of up to 20 senior managers at Officeworks, including buyers, with the company reportedly relying on planners to manage operations in the interim. However, he did not hold back in criticizing the Labor-controlled Federal Government and its economic policies.

The management cuts come ahead of Black Friday and Australia’s peak buying period, raising concerns among industry insiders, who told ChannelNews that the restructuring has been widespread.

In a chairman’s address, MacKenzie highlighted a major investment in “a new technology layout to enhance offer presentation and customer experience” at Officeworks. Insiders claim this includes a shift toward house brands, potentially impacting multiple categories from stationery to consumer electronics, while also freeing space for new products following the discontinuation of the furniture range.

MacKenzie also used the platform to target Federal Treasurer Jim Chalmers and the Labor government, emphasizing the role of large companies in supporting the Australian economy.

Several major retailers have reportedly warned ChannelNews that headcount reductions may follow the peak buying period, citing trade union-backed programs promoted by the government that aim to lift salaries while increasing revenue pressures on large companies.

MacKenzie specifically referenced the Productivity Commission’s recommendation of a 5% cash flow tax on large corporations, stating:

“Wesfarmers already pays 30% corporate tax on Australian profits, plus around 8% in payroll and other taxes. Adding a 5% cash flow tax would bring the total to approximately 43%, making Australia’s taxation regime one of the most onerous in the world.”

He argued that union-backed initiatives encouraging higher pay for less work risk driving investment offshore, warning that this could undermine productivity and innovation:

“A lot is said about improving Australia’s productivity performance. Innovation and new investment lead to productivity increases. Driving investment away would have the opposite effect.”

MacKenzie called for comprehensive tax reform rather than piecemeal measures:

“Corporate and personal tax levels in Australia are widely accepted as too high. Reducing them will require wholesale reforms. A piecemeal approach will not suffice.”

He expressed disappointment that political leaders appear unwilling to address the challenges facing retailers, urging a focus on long-term national interests rather than short-term political considerations.

MacKenzie also criticized the regulatory environment:

“Overbearing regulation hinders economic development. While there is general agreement on this at forums like the Commonwealth economic roundtable, meaningful change will require strong political will in the face of stakeholder protests.”