Bunnings to cut hundreds of jobs as hardware giant looks to cut costs after surviving the coronavirus pandemic
- Bunnings to lay off several office jobs in the coming months
- A source revealed management’s plan to overhaul the support and training system
- Economists warn that retailers will suffer from January with the consumer budget
Australian hardware giant Bunnings will cut several jobs to help cope with the post-Covid economic crisis, it has been revealed.
Perth owners Wesfarmers will now look at 53,000 Bunnings employees to find where the company can cut costs as bills continue to grow.
A Bunnings source warned that several jobs will be laid off in the coming months (a Bunnings employee pictured)
A management review of the company’s administrative workforce will be conducted and is expected to find that ‘some support office roles’ in Australia ‘will no longer be required’.
“Now that we are on the other side of the most disruptive part of the pandemic, we are reviewing our support center resources to make sure we are prepared for the future,” he said.
“We regularly review our team resources to ensure we have the right skills and capabilities to support our growth strategy.”
Bunnings is one of Australia’s largest retailers and employers, selling a wide variety of construction, trade, outdoor and furniture products.
He hasn’t confirmed exactly how many positions will be cut, but the overall loss he estimated would be around the 300 mark, which he later disputed.
Senior management said the cuts are a review of Bunnings’ operations as Australia adjusts to post-Covid trading.
The source said the job cuts will also take into account currently vacant positions, so not every position lost means a job lost.
The cuts come as economists warn that retailers such as Bunnings will suffer as consumers adjust their budgets to accommodate the cost-of-living crisis (a Bunnings store is pictured)
Bunnings overhauled its development teams during the Covid lockdowns, but is now looking to shift training, human resources and skills development programs to an online format.
The layoffs and redundancies will take effect in the coming months as economists warn that retailers will soon feel the impact of the cost-of-living crisis.
Experts predict that consumers will cut back on their purchases starting in January as higher interest rates, bills and the costs of everyday items continue to strain budgets.
Australians are spending an extra $7,800 a year on household bills compared to 2021, with the price of groceries, housing and transport bearing the brunt.
Figures compiled by the Institute for Public Affairs (IPA) reveal that costs have risen by a staggering 11 categories in the year to September.
Rising housing costs were the biggest factor for Australian families, rising to $2,637 or about $220 per month, and that doesn’t include rising mortgage payments.
Food and groceries were the second highest price increases to hit households, up $1,635 over the 12-month period.
Household transportation costs increased $1,049, largely due to rising gasoline prices.