Coles confirms 438 job cuts as part of restructure

COLES has confirmed it will cut 378 permanent and 60 contract positions from its Melbourne support centre but flagged $1.1 billion in further investment.

26/07/2010 BUSINESS: Shoppers look through the produce at a Coles supermarket in Perth, Australia, on Monday, July 26, 2010. Wesfarmers Ltd., Australia's second-largest retailer, said sales at its Coles unit rose in the fourth quarter as the division's convenience stores and revamped fresh food areas in supermarkets drew more customers. Photographer: Tony Ashby/Bloomberg

COLES has confirmed it will cut 378 permanent and 60 contract positions in its Melbourne store support centre as part of a restructure.

The supermarket chain says the move will lead to a “leaner store support centre” and enable increased investment across its network.

There will be 160 “redeployment opportunities” across the business and Coles says it will be working with affected staff who may wish to transition into those roles.

Coles managing director John Durkan said in a statement: “The team members affected by this decision have made a significant contribution to Coles and we sincerely thank them for their hard work.”

Mr Durkan said Coles was investing $1.1 billion in 70 new stores between 2014 and 2016, creating more than 8000 retail jobs and around 8000 construction jobs.

“In Victoria, Coles is investing more than $300 million in 14 new stores in Melbourne and regional Victoria over a three-year period, generating more than 3000 retail and construction jobs,” he said.

“In the next fortnight alone, Coles will open a new store at Kangaroo Flat, in Bendigo, creating 40 new jobs, followed soon after by the opening of a new store at Footscray Plaza, generating 70 new jobs.”

There will also be an additional 70 positions created as Coles expands its financial services offer, he added.

In a press conference this morning, Coles director of corporate affairs Alister Jordan would not rule out further cuts. “You can’t have an organisation this size without being constantly under review,” he said.

“It is a difficult day for our entire organisation. It’s a very tough decision that’s been made and one that hasn’t been made without all reasonable alternatives considered.”

Mr Jordan said the cuts were across “every unit and division” of the business. Affected staff would have a formal finish date of September 19 but Coles would be “flexible in terms of the actual finish date”, he added.