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Mothercare culls 200 head office jobs

Mothercare is set to axe around 200 roles from its head office in Watford as part of a restructure that will help it to achieve its £19m cost-saving target.

Around 50 new roles will be created, leading to a net loss of 150 jobs.

Mothercare has had a difficult year as it battles to turn around its fortunes. In June, its creditors approved a company voluntary arrangement (CVA) that includes 50 store closures by 2020 and rent reductions on 21 additional stores.

The head office restructure will create a new corporate entity, called Mothercare Global Brand, which will develop the group’s strategy. The UK business will act with more autonomy going forwards, similar to a franchisee. 

Another new entity, Mothercare Business Services, will provide central functions such as finance, HR and IT.

The roles in consultation will not be required under the new structure.

A spokesman for Mothercare said: ”We have today been communicating with our staff regarding the next stage of Mothercare’s transformation to ensure we have a sustainable, global brand which can be the leading global specialist for parents and young children. This follows the comprehensive measures taken in recent months to provide a renewed and stable financial structure for the group.

”At the core of today’s changes is a renewed focus on Mothercare as a truly global brand. As such, we are creating a Mothercare Global Brand entity, which will be responsible for developing the Mothercare strategy, maximising the value of our global brand, designing own-brand products and acting as the custodians of the brand.

“Under today’s proposals, the UK business will operate with the discipline of one of our international franchisees with the autonomy to focus its offer on an in-depth specialist knowledge of its domestic market.”

In July, Mothercare completed a refinancing and raised £32.5m to invest in digital and mobile. CEO Mark Newton-Jones stepped down in April, but returned just five weeks later.

Readers' comments (1)

  • Too often pre-Xmas. Should be laws that prevent this.

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