British clothing retailer Ted Baker Plc is said to have cut 200 jobs. The brand is currently undergoing a strategic realignment and has meanwhile significantly reduced the number of employees in the headquarters, as reported by the news magazine Drapers. The move comes as part of the move to an outsourcing model that the company wants to use to streamline operations and increase efficiency.
The jobs affected span various departments, including procurement, finance, production and shoes, according to the Handelsblatt Retail Gazette.
The reorganization of Ted Baker took place after the Acquired by Authentic Brands Group for £211 million last October. A key aspect of this reorganization was the outsourcing of the Ted Baker stores and e-commerce platform to AARC, a retail management company. AARC will assume responsibility for operating the business in 11 countries across Europe, the Middle East and Africa.
Authentic Brands Group recently entered into a long-term licensing agreement with the Canadian footwear giant as part of the expansion of its product offering aldo completed. Under the terms of the agreement, Aldo will manufacture Ted Baker shoes, handbags and small leather goods, further expanding the brand’s reach and diversifying its offering.
The job cuts will come after the company also changed its management team. Former CEO Rachel Osborne left the company six months after the acquisition closed, as did CFO Marc Dench, Human Resources Director Peter Collyer and Commercial and Business Development Director Helen Costello. These departures mark a significant transition in the leadership structure as the company adjusts to its new ownership and operating model.
The recent job cuts at Ted Baker’s headquarters and strategic shift to outsourcing reflect the brand’s determination to reduce costs, streamline operations and reposition itself for sustainable growth.
This post originally appeared on FashionUnited.uk