Dr Martens is implementing significant changes in response to economic challenges.
- 150 positions at Dr Martens’ UK and US headquarters are at risk of redundancy.
- Cost-saving measures aim to reduce expenditure by £20-25 million.
- Departments affected include marketing, design, tech, ecommerce, and recruitment.
- CEO Kenny Wilson emphasises the need for difficult decisions amidst declining profits.
Dr Martens, known for its iconic footwear, has announced a strategic initiative to address the current economic landscape’s complexities. As part of this plan, the company is considering redundancies affecting 150 roles across its UK headquarters in Camden, London, and its US office in Portland, Oregon. This move is a component of a broader £20-25 million cost-saving plan aimed at enhancing organisational efficiency.
The affected departments include marketing, design, technology, ecommerce, and recruitment. These proposed changes are in response to a reported 43% drop in pre-tax profits, which have decreased to £97.2 million. The company believes that these measures are crucial to safeguard the majority of its workforce while positioning for future growth amid economic adversities.
Kenny Wilson, CEO of Dr Martens, who will step down later this year, stated, “As announced at our financial year results in May, we are implementing a cost action plan across the business, targeting a cost reduction of £20-25 million with savings from organisational efficiency and design, better procurement, and operational streamlining.” He further remarked on the necessity of these tough choices, highlighting the imperative to protect many jobs and ensure the organisation’s resilience in challenging times.
Wilson expressed empathy towards employees affected by these potential redundancies, assuring support during this transitional period. The footwear retailer stresses its commitment to assisting staff and their families, pledging to navigate this phase with care while remaining focused on long-term sustainability.
The consultation process for these potential redundancies is underway, with the objective of making informed and sensitive decisions that align with the company’s strategic imperatives.
Dr Martens is undertaking essential restructuring to maintain its market position and ensure sustainable growth.
