Ted Baker to cut 500 jobs across HQ and retail

Ted Baker is reportedly planning to cut 500 jobs across its retail operations and HQ as it looks to mitigate the financial impact of Covid-19.

Staff have been informed that at least 500 jobs would be lost as the company looks to save 6 million pounds by the end of the year, The Sunday Times reports. It is understood that around 200 jobs will be cut at the label’s London HQ and the rest from across its physical retail business.

The company joins a growing list of UK retailers, including Arcadia, John Lewis and Harrods, to announce job cuts in recent months as the industry reels from the impact of Covid-19 and months of store closures.

On Monday, reports broke that British retail giant Marks & Spencer would be announcing hundreds of jobs cuts this week as it looks to accelerate its restructuring.

Ted Baker to cut 500 jobs

A spokesperson for Ted Baker said: “As part of our continuing transformation plan, we have been assessing the appropriate level of staffing across our business and are in consultation with affected colleagues.

“We have not taken this decision lightly and would like to thank all our colleagues for their hard work and commitment. However, we believe this is necessary in order to transform Ted Baker and create a more sustainable business in the future.”

It’s a tough period for the luxury label. Earlier this month, it was reported that the company was facing an investor revolt over its plans to increase the salary of its executive team despite a backdrop of poor trading results and a deeply uncertain retail landscape.

In June, it revealed revenues for the 14 weeks to 2 May fell 36 percent due to store closures. For the year to 25 January, the label made a loss before tax of 79.9 million pounds.

At the beginning of the year, auditors at Deloitte found that the company overstated the value of its inventory by 58 million pounds. The initial discovery of the inventory error last year - which at the time was estimated by the company to be less than half the true amount - led to the departure of then-CEO Lindsay Page in December.

Photo credit: Ted Baker media resources