(Reuters) - Troubled fashion retailer Ted Baker said on Wednesday it would cut 102 jobs and remove another 58 posts, which are currently vacant, across its offices to reduce costs.
The company said the reorganisation is expected to reduce costs by 5 million pounds ($6.50 million) in the current financial year, and by 7 million pounds on an annualised basis.
The move comes a month after Ted Baker said inventory on its balance sheet was overstated by 58 million pounds, more than double its preliminary estimates.
The company suffered a string of setbacks last year, including profit warnings, inventory overstatement, suspension of dividend payments and management changes following misconduct allegations against founder and top shareholder Ray Kelvin, who has denied them.
Former Chief Executive Officer Lindsay Page left the company in December after just eight months in the role, along with Chairman David Bernstein.
“A key area of focus for Management following the cost review is to reduce our office cost base, in particular by simplifying and de-layering the Group’s organisational structure,” the company said.
Earlier this month, the company’s executive committee was restructured, with its members reduced from 13 to 9, Ted Baker added.
The company said reduction in its office headcount is the first of several likely initiatives to improve its efficiency and cost structure. Ted Baker expects a restructuring charge of 2.7 million pounds in the current year.
The company, known for suits, shirts and dresses with quirky details, also said it was looking to boost sales by focusing on digital growth, brand revitalisation and extending its product line.
($1 = 0.7696 pounds)
Reporting by Tanishaa Nadkar in Bengaluru; Editing by Vinay Dwivedi