Woolworths today posted its biggest loss in 20 years at $1.23 billion, and cut dividends.
This is from CEO Brad Banducci’s update on his five-point plan to turn the company around:
5. Becoming a lean retailer through end-to-end process and systems excellence
Merchandising platform now stable, SuccessFactors Human Capital Management system now live, 1 Store Program in roll-out
End-to-end process improvement initiatives underway across the business – Faster Fresh, meat processing model, on-shelf availability, store IT support, store maintenance
Over 500 support office and supply chain roles to be removed
More work to do on generating a productivity dividend from new IT systems implementation
So, the company is laying off 500 people and its technology program isn’t really delivering its benefits yet.
Explaining a restructure is understandably difficult, but that is an extraordinarily complex way to explain something simple.