PARIS — Pandora plans to eliminate a layer of regional management, resulting in 180 job cuts, the struggling jewelry retailer said Wednesday.
The move comes as companies brace themselves for further disruption to consumption as the spread of coronavirus ripples across the globe.
To be implemented on April 2, the cuts were described as a bid to reduce complexity to help Pandora operate more quickly, with limited cost savings.
The 100-plus markets where the jeweler operates will be grouped into 10 clusters and headed by a general manager based in the largest market. A chief commercial officer will be recruited over the second quarter from outside the company to manage the regional directors and will report to chief executive officer Alexander Lacik.
“The reorganization will reduce organizational complexity, enable Pandora to execute with more speed and agility, and add critical capabilities required to support growth,” Lacik said in a statement.
Current regional presidents will step down from the executive leadership team, with current Europe, Middle East and Africa president David Allen staying on while Americas president Sid Keswani will become president of the North America cluster. Asia-Pacific president Kenneth Madsen will leave the company.
The Copenhagen-based fashion jeweler, which has been struggling to deal with declining foot traffic in malls, is undergoing a broad restructuring and brand reboot under Lacik, who joined last year, bulking up marketing spending while buying back wholesale inventory, revisiting its store network and reducing discounts.
Executives last month flagged the need for improvement in China, noting the brand’s performance deteriorated over the quarter amid fierce competition in trendy jewelry. Disruption from the coronavirus had prompted a number of store closures, executives said in early February, at the time describing a “highly unpredictable situation.”
As it focuses on more data-driven content for marketing, Pandora late last year recruited a former Bulgari marketing executive, Carla Liuni, to spearhead efforts to build a “creative and data-driven foundation for Pandora’s brand relevance,” which will include product development.
The reorganization will slightly increase non-restructuring costs for the year, which are now predicted to total around 1.3 billion Danish Kronor, or $190 million, the company said.