Foot Locker announces job cuts to save £18 million
Foot Locker is the latest retailer to announce job losses in 2023.
The New York-based sportswear retailer announced that it would eliminate “a number of corporate and support roles” in an effort to improve the business’s operational efficiency.
However, the firm did not confirm how many employees will be affected by the reductions.
The company anticipates saving over £18 million in annual costs as a result of the layoffs starting in the fiscal year 2023.
In the same filing, the retailer said it has made the strategic decision to “wind down its Sidestep banner in Europe”, which accounts for about 80 stores.
The business said this was “consistent with the company’s broader efforts to focus on its core and growth banners”.
When Foot Locker purchased Runners Point Group’s parent firm in 2013 for a sum of €72 million, it also acquired the clothing and footwear brand Sidestep.
The business also disclosed that Andy Gray, EVP of global lockers and Champs Sports, has left the organisation.
The layoffs occur as Foot Locker makes numerous executive changes as the new year begins.
A number of changes to the company’s executive team were made public last year, including the resignation of the chief financial officer Andrew Page and the hiring of a new chief operating officer, Elliott Rodgers.
Over the summer, the store also appointed Mary Dillon to replace Dick Johnson as its CEO.
Foot Locker reported a smaller-than-expected decline in sales and profit in the third quarter of the year, prompting an increase in the full-year outlook in November.
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The revenue for the three months ending on October 29 was 2.2 billion dollars, which was up 3.3 percent in constant currency but down 0.7 percent on a reported basis.
Source: Retail Gazette