French Connection has refused to rule out further job cuts in the UK after the retailer announced an annual profit loss of £17.4m today.
Up to 20 head office jobs have already been axed from the troubled fashion chain, with a further 20 cuts in the US, a spokeswoman told Personnel Today.
She branded these cuts “insignificant” compared to the 3,500 employees worldwide, but admitted the group was continuously reviewing whether more job losses were needed to cope with the economic climate.
“At the moment, [FCUK] doesn’t know if there will be more job losses, it is something that will be continually reviewed. It depends on whether the economic climate improves or gets worse,” she said.
Stephan Marks, chairman and chief executive of French Connection, said the dip in profits was disappointing and to a large extent reflected the impact of the recession on the fashion industry. He added the group was preparing itself for a difficult new financial year.
French Connection’s profit slump echoes demises and redundancy fears across the high street. Last month, the company behind fashion shops Karen Millen and Oasis was forced to file for bankruptcy – putting thousands of retail jobs on the line.