It’s also making other changes.
Pandora announced that it will cut 397 jobs as it seeks to "strengthen commercial functions, streamline manufacturing and shift resources to strategic priorities."
Of the employees who are leaving, 218 are in Thailand, the company stated in a press release.
"PANDORA has nearly doubled in size the past 3 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," said Pandora CEO Anders Colding Friis. "Sadly, the changes mean that good employees will lose their jobs, and we are supporting them in the best possible way."
The company currently has about 27,000 employees.
Along with the layoffs, Pandora announced that it will:
- 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 centers.
- Implement a centralized operations and supply chain structure to streamline manufacturing.
- Shift more resources to strategic priorities such as digital and e-commerce
The organizational changes are expected to reduce annual costs by about DKK 150 million (US $23.3 million) starting in 2019.
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