New Zealand-based department store chain Warehouse Group is planning to cut 120-140 jobs across its flagship Red Shed furniture stores as part of its restructuring efforts.

The job cuts would impact employees at 92 stores.

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The restructuring plans include increasing staff during peak hours and improving leadership support during trading hours.

Warehouse division chief executive Pejman Okhovat Okhovat said: “The company needs to evolve from a traditional, hierarchal structure to one that is fit for the future.”

The retailer company is currently working with employees, who have been impacted by this decision, to place them at other vacant positions at other outlets.

New Zealand-based national trade union First Union noted that the employees impacted by the decision lack information and the new jobs offered to them do not provide as many hours.

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“The company needs to evolve from a traditional, hierarchal structure to one that is fit for the future.”

The impacted employees will be required to apply for the new jobs until 1 August and a decision will be taken following interviews on 10 August.

First Union organiser Kate Davis was quoted by Scoop.co.nz as saying that the union has urgently requested a meeting: “to clear up the mass confusion that is putting workers in a state of turmoil, which The Warehouse has agreed to.”

“There was not enough time during the consultation process, and now interviews have apparently begun today when the jobs aren’t even up on their website yet. It’s a mess and members need answers.

“There is already misinformation out there. Some staff believe they will not receive redundancy if they do not apply for any of the new roles, and these new roles do not suit many workers who need a decent number of secure hours.”

Warehouse Group consists of The Warehouse, Noel Leeming, Warehouse Stationery, and sports goods unit Torpedo7.

The earnings for the quarter ending on 29 April show that the listed company’s sales across its brands grew to $701.2m from $683.5m from the same period a year earlier. This was in line with expectations and kept its forecast intact for full-year earnings of $50m-to-$53m, which was a drop of around 25% from the previous year. Revenues at its 93 Red Shed Warehouse outlets, however, dropped by 0.9% to touch at $388.2m in the quarter.