New SurfStitch boss Mike Sonand announces US jobs cuts

The embattled surfwear retailer has announced that it will cut 40 jobs as part of a restructuring of its US operations.

New online SurfStitch CEO Mike Sonand.

New SurfStitch boss Mike Sonand has swung the axe just a fortnight after assuming the chief executive role at the embattled surfwear retailer, announcing a restructure of US operations that will see 40 positions lost by the end of October.

The move follows a tumultuous year that has seen three profit warnings delivered to investors alongside the shock departure of co-founder and former chief executive Justin Cameron in March.

Mr Sonand, who took over the chief executive role earlier this month, said the US restructure was a key element of his plan to return the group to profitability next year after it recently announced updated forecasts for a loss this year.

“Where required, we can support US customers from both our UK and Australian operations, with a much lighter local presence and without compromising on service,” he said.

“This was not an easy decision to make, but we need to remain competitive in an extremely challenging North American environment, that has been particularly impacted by margin compression.”

Further details of the restructure will be provided in its August full-year results announcement, although the firm insisted the shifting of some functions to its UK and Australian operations would not disrupt the US business.

The activity suggests Mr Sonand is already making good on his promise to simplify the group after warning of an “unhealthy” focus on revenue growth at any cost had hurt the firm since its 2014 listing, with too many acquisitions and an inability to properly incorporate them.

“I think [the] focus on top-line growth came at a significant cost,” he told The Australian.

“The pace was frenetic and created a lot of distraction, complexity and lack of accountability across the group.”