Woolworths To Close 27 Stores And Cut 500 Jobs
Supermarket chain Woolworths has announced radical restructuring that will see the company close 27 stores and shed 500 jobs.
“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,” said Woolworth’s chief executive Brad Banducci.
An additional 34 stores were identified as underperforming.
The company also highlighted five Big W stores it expects to close within the next five years, telling Fairfax it was “cautiously optimistic” about the future of the department store but not ruling out the possibility of selling it off.
As part of the restructure, long-term performance measures will be introduced and the rollout of new stores slowed to 45 from the original planned 90 over the next three years.
As a result of the $959 million restructuring, the company expects earnings for the year to clock in at between $2.55 and $2.57 billion before tax.
Woolworth’s shares rose 7 percent after the announcement.