The Warehouse Group is axing 270 head office roles in a major restructure, the latest sign of ongoing pain in New Zealand's retail sector.
The cuts come as the iconic Kiwi retailer faces mounting economic pressure, rising costs, and changing consumer behaviour in an increasingly difficult market.
According to 1News, CEO Mark Stirton said "the cost base was unsustainable as a value retailer" and the company is pursuing a cost-reset programme targeting expenses below 31% of sales.
Mate, The Warehouse is a New Zealand institution. When it's cutting this deep, it signals real economic trouble beyond just one struggling retailer.
The company is outsourcing support functions including technology, accounting, call centres, and payroll to Tata Consultancy Services. It's the classic corporate restructure playbook: offshore the back office, keep the customer-facing roles local, and hope the cost savings restore profitability.
But 270 job losses is brutal for the workers affected. These aren't minimum-wage shop floor positions - these are head office professionals in technology, finance, and operations. Many will struggle to find equivalent roles in New Zealand's tight labour market, despite the overall unemployment spike.
The Warehouse Group's struggles connect to broader economic malaise hitting New Zealand. Consumer spending is weak. Households are stretched by mortgage costs and inflation. Retailers are caught between rising costs and customers with less money to spend.
The redundancy costs alone are projected at $6 million for the current year. The Warehouse Group operates three retail brands: The Warehouse, Warehouse Stationery, and Noel Leeming.
This restructure follows similar moves across New Zealand's retail sector as companies try to survive an economic downturn that shows no signs of ending soon. The unemployment rate hitting 5.4% - the highest since 2015 - means The Warehouse's job cuts are part of a larger pattern.
For New Zealand's middle class, it's another sign the economic pain is spreading beyond the usual vulnerable groups into white-collar professional territory.
