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Last Updated: Thursday, 15 January, 2004, 12:16 GMT
Boots confirms 900 jobs to be cut
Boots store
Boots is facing fierce competition
High Street giant Boots is axing 900 jobs at its head office in Nottingham in an attempt to cut costs.

The move is part of a programme by Boots called 'Getting Into Shape', which aims to make �100m worth of savings over the next three years.

Chief executive Richard Baker, who joined Boots from Asda last year, has implemented the cost-cutting drive.

Boots is currently facing fierce competition from cut-price rivals and from the supermarket sector.

Last week, Tesco unveiled a �70m package of price cuts focused particularly on health and beauty products, as the supermarket chain targeted Boots' market.

New regime

Boots - which employs about 60,000 staff in total - axed 500 head office staff last year, and had warned previously that more cuts were on the cards.

Although it was not unexpected, this remains a devastating announcement
John Hannet, Usdaw
The latest job cuts involve support and "central functions" at its Nottingham HQ as well as some regional support roles.

They will take place over the next six months at an estimated cost of �47m.

Boots hopes that many of the jobs will be lost through voluntary redundancy and pledged to help those workers affected to find new jobs.

Meanwhile, the company said it was also creating an extra 290 jobs over the next year at its stores.

The idea is to cut out layers of management and deliver a "simpler and more responsive" business while improving the way stores are organised in key areas such as pharmacy, sales and operations.

Boots is due to issue a trading statement on Friday.

Talks urged

The shopworkers' union Usdaw said it wants "urgent talks" with management in the hope of protecting those jobs under threat.

"Although it was not unexpected, this remains a devastating announcement and represents a huge reduction in workers at Boots' Nottingham head office," said John Hannet, general secretary-elect of Usdaw.

"We want to hold talks as soon as possible to negotiate on behalf of our members and save as many jobs as we can.

"We would hope that there is scope for change to Boots' plans even at this stage, " he added.




WATCH AND LISTEN
The BBC's Peter Lane
"The company will try to secure voluntary redundancies"



SEE ALSO:
Tesco price cuts to target Boots
04 Jan 04  |  Business
Boots profits tumble
05 Jun 03  |  Business
Boots rethink costs jobs
27 Mar 03  |  Business


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