Woolworths Holdings Limited - Statement On Country
WOOLWORTHS HOLDINGS LIMITED
We advised in the announcement of 18 January 2002 that the recent closure of
Country Road's US operation would allow the business to focus on the core
Australasian market and on markets with climates similar to their own. It
was announced that only one range would be produced allowing significant
cost savings, and that Country Road would ensure greater focus on the design
and delivery of that range.
Having now reviewed their processes, systems and structures Country Road
management has determined the most economic and effective overhead structure
for the business. The new structure has resulted in 42 positions being made
redundant. The redundancies were made across all levels and divisions of
Country Road's Head Office, and represent a 15% reduction in the number of
head office staff. An outplacement company has been appointed to assist
employees affected by the restructure and appropriate redundancy packages
have been provided.
The changes made to Country Road's structure and operating processes will
result in annualized cost savings of approximately $2.7m, and reflects
managements commitment to ensuring the business is returned to sustained
profitability and is better placed to focus on its core Australasian market.
END
Contact : Simon Susman : Chief Executive Officer - 083 252 5696
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