Dr Martens has initiated a consultation process that places 150 head office roles in the UK and US at risk to achieve significant cost savings.
- The decision to cut jobs is part of a strategy to save £20-25 million in light of a 43% drop in pre-tax profits.
- Affected departments include marketing, design, technology, ecommerce, and recruitment, impacting offices in Camden, London, and Portland, Oregon.
- CEO Kenny Wilson, who will soon step down, emphasises the necessity of these measures to adapt to economic challenges and protect the majority of jobs.
- The company assures support to affected employees during this transitional period.
Dr Martens has announced a significant restructuring effort that puts 150 jobs at risk across its head offices in the UK and the US, affecting departments such as marketing, design, technology, ecommerce, and recruitment. This move is part of a broader £20-25 million cost-saving plan. The company revealed these measures after reporting a nearly 43% decrease in pre-tax profits, dropping to £97.2 million. The consultation process with staff has commenced at their Camden, London, and Portland, Oregon offices.
CEO Kenny Wilson, who is set to resign later this year, addressed the situation, stating: “As announced at our FY results in May, we are implementing a cost action plan across the business, targeting a cost reduction of £20-25m with savings from organisational efficiency and design, better procurement and operational streamlining.”
He further explained, “Unfortunately, and as we have already said, this includes making some tough decisions, including a reduction in our workforce. We deeply value every member of our team – this step is in response to the challenging economic conditions we all face and is essential to navigate the current landscape while positioning ourselves for future growth, and critically, protecting the jobs of the many.”
Dr Martens is committed to supporting its employees through this challenging period, understanding the personal impact on the individuals and their families involved. The company aims to ensure the necessary adjustments do not compromise its future growth ambitions.
Dr Martens is undergoing strategic changes to ensure financial stability and future growth amidst economic pressures.
