The Warehouse Group will cut around 270 head office roles and more functions will be outsourced as part of a major restructuring aimed at reducing costs and returning the retail giant to sustainable profitability.
In an announcement on the NZX, it today confirmed a new "leaner" operating structure for its head office, including co-sourcing with Tata Consultancy Services (TCS).
The shift is part of a wider cost‑reset programme first signalled in November 2025, targeting both labour and non‑labour savings to bring the company's cost of doing business, or all expenses incurred by business, to below 31% of sales.
TCS would take over support for several corporate and administrative functions, including parts of technology, accounting, call centres and payroll. The Warehouse Group said the move would give it access to modern systems, expanded capacity and AI‑driven tools at a scale it could not build internally.
The Warehouse Group chief executive Mark Stirton said the cost base was unsustainable as a value retailer.
"As one of New Zealand’s largest retail employers we must make these tough choices for our 10,000 team members and their families across the country and return the Group to sustainable profitability."
While most of the affected roles would leave the business, Stirton said some areas were still going through consultation.
"We’re supporting everyone affected with care during what we appreciate is a difficult time for them.'
The job losses were expected to cost the Warehouse Group around $6 million in redundancy costs this year.
The Warehouse Group consists of The Warehouse, Warehouse Stationery and Noel Leeming.
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