Kathmandu to cut jobs

Retailer Kathmandu could cut up to 25 jobs from its head offices as it looks to improve its profitability.

Struggling retailer Kathmandu may cut up to 25 jobs from its head office as it looks to lift profit.

The outdoor clothing maker said up to 10 per cent of jobs may go from its Australian and New Zealand head offices, which are understood to employ around 250 staff in total.

The cuts are a potential outcome of a review of head office operations launched by chief executive Xavier Simonet.

Since Mr Simonet took control of Kathmandu in July he has dealt with a takeover offer from New Zealand retailer Briscoe worth about $318 million, which Kathmandu recently rejected.

He has also informed the market of a 53 per cent drop in the company's annual profit, as same store sales dropped two per cent.

Mr Simonet said the company was taking decisive action to address its underperformance in sales and profit, with all areas of the business to be examined.

"I am confident the outcome of the review will enable us to continue to invest in our growth strategies and deliver improved results for our shareholders," he said.

The review will also focus on improving efficiency to reduce costs, improving product innovation, improving its stores and activating a members program.

The review will be completed by the end of September.

Kathmandu shares gained 4.5 cents, or three per cent, to $1.54.


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Source: AAP


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