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Carpetright Axes 25 Percent Of Head Office Employees

By Nithya Bose in Business News, posted May 8, 2024

Carpetright, one of the UK's largest carpet retailers, will cut over 25 percent of its head office workforce due to sustained trading difficulties.

The company informed its staff that approximately 70 positions would be eliminated to reduce costs.

These cuts are centered at Carpetright's headquarters in Purfleet, Essex, but they will not affect the number of employees at its retail locations.

It operates 285 stores and concessions in the UK and 120 stores in Belgium, Ireland, and the Netherlands.

The job losses affect various departments, including IT and warehousing, to decrease its cost base by around £22 million.

This decision follows two consecutive years of significant losses for the company, which Teneo has advised on its cost-saving strategies.

The economic downturn and increased competition, notably from Tapi—a rival chain formerly managed by the son of Carpetright's founder, Lord Harris of Peckham—have impacted the company's performance.

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Kevin Barrett, CEO of Nestware Holdings, Carpetright's parent, said: "While we have worked tirelessly to navigate our current challenges, we understand the impact this restructure will have on valued members of our team.

"Our top priority remains supporting those affected through this process.

"As with many businesses, we face ongoing challenges in today's tough economic climate."

He added: "We've carefully examined our performance against operating costs, leading us to make difficult decisions to ensure the future success of our brand."

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