Body Shop cuts 275 jobs in restructuring effort

By Katie Bird

- Last updated on GMT

Related tags Body shop Retailing The body shop

The Body Shop is cutting 275 jobs as part of a restructuring plan that aims to equip the company for long term growth.

Recent results show the retailer, which was bought by L’Oreal in 2006, has been struggling with sales falling in both in the fourth quarter and the full year by 7.6 and 3.9 per cent respectively.

The job losses are part of a plan to improve the company’s performance and will see the focus move from the office based functions of the business towards the retail outlets.

Indeed, the company confirm that the 275 job losses, 150 of which will be in the UK, will not affect stores of store staff.

According to the company, affected employees, if not redeployed in other areas of the business, will be ‘generously supported to help secure their future’.

As part of the restructuring, the company will also be strengthening its product innovation.

Parent company L’Oreal recognised the need to re-energise the Body Shop brand with the publication of 2008’s results, announcing a new communication strategy based on the tag ‘Nature’s way to beautiful’ that is designed to help reassert the brands natural and ethical philosophy.

Cheaper products

The Body Shop is not the only part of the L’Oreal empire to undergo changes in the fact of the current economic climate.

After the publication of disappointing results, which saw fourth quarter sales drop 0.6 per cent after years of high growth rates, the company has announced plans to add cheaper products to a number of its ranges in the hope of catching consumers that might otherwise trade down.

Jean Jacques Lebel, president of consumer products, explained that new products retailing at €9 would be added to its L’Oreal Paris skin care range that currently retails between €11-18.

Luxury products will also become more affordable with the release of some of the high selling fragrances in smaller and cheaper bottles.

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