Dr Martens has announced a major restructuring, impacting 150 roles at its UK and US head offices.
- The cost-saving initiative aims to reduce expenses by £20-25m following a drop in revenue and profits.
- The roles affected span various functions like design, marketing, and technology at the company.
- Weak consumer confidence and declining boot sales in the US have compounded the financial challenges for Dr Martens.
- Kenny Wilson, the outgoing CEO, emphasized the importance of these changes for future growth and job protection.
Dr Martens has initiated a significant restructuring process, placing 150 roles at risk across its UK head office in Camden, London, and its US headquarters in Portland, Oregon. This move is part of a broader cost-saving strategy aiming to achieve a £20-25 million reduction. The cuts affect multiple departments, including design, marketing, e-commerce, technology, and recruitment.
The restructuring initiative follows a notable decline in Dr Martens’ financial performance over the past year. Revenue dropped by 12.3% to £877.1 million, and profits after tax decreased by 46.3% to £69.2 million. The company attributes these declines to weak consumer sentiment and challenging boot sales in the United States.
Dr Martens’ share price has also been negatively impacted. It currently stands at 56.8p, marking an 87% decrease since the company went public on the London Stock Exchange in January 2021 under the ownership of private equity firm Permira.
Kenny Wilson, the outgoing CEO of Dr Martens, has commented on the necessity of this restructuring. He stated, “We are implementing a cost action plan across the business, targeting a cost reduction of £20-25m with savings from organizational efficiency and design, better procurement, and operational streamlining.” Wilson also acknowledged the tough decisions involved, emphasizing the company’s commitment to navigating economic challenges while positioning for future growth and protecting the majority of jobs.
The upcoming leadership transition in April 2025, when Wilson will step down and be succeeded by Ije Nwokorie, the current chief brand officer, underscores ongoing changes within the company. Nwokorie has been with Dr Martens since January 2021, initially serving as a non-executive director.
This restructuring effort is a strategic response to financial pressures, aiming for long-term sustainability and growth.
