Coles vows to reinvest job cut savings

 In Australia, Coles, NewZealand
Coles has vowed to reinvest almost $40 million in savings from job cuts into reducing grocery prices, refurbishing stores and maintaining the pressure on rival Woolworths.

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Coles confirmed on Wednesday that more than 400 jobs would be lost at its store support centre in Tooronga in Melbourne, as revealed by afr.com on Tuesday. It marks the biggest restructuring since the $20 billion Wesfarmers acquisition in 2007.

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Coles managing director John Durkan said 378 permanent positions and 60 contractor positions would be axed. Some of these staff would be offered redeployment. Coles has about 160 redeployment opportunities across the business.

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It is understood that several general managers who joined Coles five or six years ago after the Wesfarmers takeover are also parting ways with the retailer as Mr Durkan puts his stamp on the business after taking the helm in July from Ian McLeod.

nMr Durkan said the restructure would lead to a leaner store support centre and enable Coles to increase investment in its store network while continuing to reduce grocery prices.

Coles declined to detail the cost of the redundancy program or the value of the cost savings, which have been factored into budgets for 2015. Sydney Morning Herald -Read more…
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