Bunnings is cutting hundreds of jobs as the hardware giant looks at shaving costs after surviving the coronavirus pandemic
- Bunnings will make several office functions obsolete in the coming months
- An insider revealed management’s plan to overhaul the support and training system
- Economists warn that retailers will suffer from consumer budgeting from January onwards
Australian hardware giant Bunnings will lay off several jobs to deal with the post-Covid economic crisis, it has been revealed
Perth-based owners Wesfarmers will now sift through 53,000 Bunnings employees to find where the company can cut costs as bills continue to grow.
A Bunnings insider warned that there will be several job cuts in the coming months (pictured a Bunnings employee)
A management review of the company’s back office staff will be conducted and is expected to find that ‘some office support roles’ in Australia ‘will no longer be necessary’.
“Now that we’re on the other side of the most disruptive part of the pandemic, we’re reviewing our support center resources to make sure we’re ready for the future,” it said.
“We regularly review our team’s 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 range of construction, trade, outdoor and furniture items.
It has not confirmed exactly how many positions will be laid off, but the total loss is said to be around 300, which it later disputed.
Senior management said the cuts are an overhaul of Bunnings’ operations as Australia adjusts to post-Covid trading.
The insider said the job cuts will also take into account vacancies that are currently unfilled, so not every position lost means a job lost.
The cuts come as economists warn retailers, such as Bunnings, will suffer as consumers tighten their budgets to accommodate the cost-of-living crisis (pictured, a Bunnings storefront)
Bunnings has been overhauling its development teams during the Covid lockdowns, but is now looking to shift its training, HR and skills development programs to an online format.
The layoffs and layoffs will take effect in the coming months as economists warn that retailers will soon feel the effects of the cost-of-living crisis.
Experts predict that consumers will start shopping less from January as higher interest rates, bills and day-to-day expenses continue to deplete budgets.
Australians will spend an additional $7,800 a year on household bills compared to 2021, with the price of groceries, housing and transport being hit hardest.
Figures compiled by the Institute of Public Affairs (IPA) show costs increased in 11 categories over the year to September.
The rising cost of housing was the biggest factor for Aussie families, rising by $2,637 or about $220 a month – and that’s excluding rising mortgage payments.
Food and groceries were the second highest price increase to hit households, rising $1,635 over a 12-month period.
Household transportation costs increased by $1,049, largely due to rising gasoline prices.