Coles to cut up to 600 head office jobs in Melbourne
Supermarket chain Coles plans to cut between 500 and 600 jobs from its head office in Melbourne as part of a renewed efficiency drive aimed at freeing up funds to reinvest in reducing food and liquor prices.
The job cuts are expected to be announced in Melbourne on Wednesday by new Coles managing director, John Durkan.
Coles was not immediately available to comment on the job losses, which represent almost 20 per cent of the 3000-strong workforce at Coles’ Tooronga headquarters.
However, Mr Durkan told investors last month that, faced with continued cost pressures, Coles needed to simplify and reduce its cost of doing business.
n"To enable further investment in value in fresh food, we will continue to drive productivity and efficiency through our business and we have significant opportunity to do so through simplifying our business," he said.
It is understood that most of the jobs cuts are in back office functions including payments, accounts and IT rather than in customer-facing services.
Coles is believed to be planning to outsource its IT department – sending some functions offshore – emulating suppliers and competitors such as Pacific Brands. Sydney Morning Herald – Read more…