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Published
Jun 21, 2016
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Australia's Surfstitch cuts 40 jobs from US operations

Published
Jun 21, 2016

Struggling online apparel and sportswear retailer Surfstitch will let go 40 staff from its US operations, come October 2016. The Australia firm said the move is part of a strategic review of operations in the US, which includes an assessment of the group's strategy and operations in North America, as well as extensively analysing sustainability in the future and a return to profitable growth.


Surfstitch cuts 40 jobs across US operations - Surfstitch


“The decision to restructure the US operations is part of our focus on returning to profitability and being cash-flow positive during FY17," SurfStitch Group CEO Mike Sonand said in a statement.

"Where required, we can support US customers from both our UK and Australian operations, with a much lighter local presence and without compromising on service. This was not an easy decision to make, but we need to remain competitive in an extremely challenging North American environment, that has been particularly impacted by margin compression." 

The restructure is not expected to result in any business disruption and customers and vendors will receive continuous operation and order fulfilment through the transition. The workforce reduction will be achieved through voluntary and involuntary layoffs.

The company will provide a comprehensive review of its trading performance and an updated outlook in its full year results presentation in August, including detail of the impact of the US restructure and other key initiatives for FY17.
 

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