Jewellery giant Pandora has made organisational adjustments to align functions across the company, support strategic priorities and protect profitability.
The company say changes, which include cutting over 300 jobs, have been made to strengthen commercial functions, streamline manufacturing and shift resources to strategic priorities.
In a statement released today Pandora said it will be making the following changes:
- Strengthen cooperation between sales, marketing and merchandising
- Optimise support functions, including providing more standardised reporting and processes
- Ensure scale benefits from selected regional shared service centres
- Implement a centralised operations and supply chain structure to streamline manufacturing
- Shift more resources to strategic priorities such as digital and e-commerce
As a result of the organisational adjustments, 397 of Pandora’s 27,000 employees will leave the company, of which 218 employees are located in Thailand.
Pandora chief executive officer, Anders Colding Friis, says: “We have made important progress on our 2022 strategy since we launched it last year, and are on the right long-term direction for Pandora. Pandora has nearly doubled in size the past three years, and our ways of working have also grown rapidly and resulted in different organisational set-ups in different parts of the company.
“The adjustments we announce today will reduce complexity and free up resources that we can add to our strategic priorities. The adjustments are also – together with our procurement program – necessary to protect our profitability. Sadly, the changes mean that good employees will lose their jobs, and we are supporting them in the best possible way.”
The organisational changes are expected to reduce annual costs with around DKK 150 million (£17.9m) from 2019.
Pandora has also announced today an adjustment to its financial forecast, where the brand says it now expects revenue to increase 4-7% in local currency (from previously guided 7-10%).