Australia’s largest department store cuts staff, outsources to India
MELBOURNE, AUSTRALIA — Australia’s largest department store, Myer, recently made a significant move by laying off head office staff, particularly from its e-commerce and operations teams, as it shifted some of its functions to India.
The decision—overseen by Myer’s GM of E-commerce Lynna Barnard and Chief Customer Officer Geoff Ikin—was executed with such abruptness that it left many employees reeling from the shock.
An anonymous source at Myer told Inside Retail that the affected staff were given no prior warning. Senior leaders reportedly summoned individuals to a room to deliver the news of their redundancy one by one.
While two sources claim that this move impacted around 50 staff members, Myer has confirmed that the actual number of redundancies was 13, with an additional two employees being reassigned within the company.
Myer’s restructuring for e-commerce growth
In a statement to Inside Retail, a Myer spokesperson explained that the decision stemmed from their assessment of the store’s “capacity and capability requirements to support future growth.”
The spokesperson emphasized that the changes were aimed at enabling “greater access and flexibility to specialist resources,” which they believe will support growth and drive efficiency.
Despite the strategic reasoning provided by Myer, the manner in which the redundancies were handled has been criticized.
The source highlighted that Lynna Barnard, who initiated the decision, did not participate in the conversations with the staff who were let go.
Furthermore, the laid-off employees were reportedly instructed not to discuss the matter with stakeholders, a claim that Myer denies.
The aftermath of redundancies
The impact of the layoffs has been profound, with one employee expressing devastation over the loss of 60 to 70% of their team.
This has left the remaining staff to manage the increased workload, along with new team members based in India.
This is not the first instance of Myer outsourcing its functions. In 2017, the Australian Financial Review reported that Myer cut 50 jobs by outsourcing its contact center and digital services functions.
Records also indicate that Myer has been engaging in outsourcing practices since as early as 2004.
The recent layoffs and outsourcing move by Myer reflect the company’s ongoing efforts to restructure and adapt to the growing demands of e-commerce, albeit with significant internal changes that have affected its workforce.
