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Pandora Trims Workforce Again Amid Reorganization
The jeweler has a multi-step strategy to get back on track, including increased investments in tech and improvements to its retail presence.
Copenhagen, Denmark—Pandora announced this week that it is cutting 180 jobs as part of a multipronged strategic reorganization, the next step in its turnaround plan.
The Danish jeweler employs a total of 28,000 people worldwide, meaning the job cuts will affect less than 1 percent of its workforce.
Here’s a rundown of the changes and what they mean for the jewelry brand.
Pandora is closing some regional offices.
The company will close its three regional offices in EMEA (Europe, Middle East and Africa), the Americas and the Asia-Pacific region.
“The reorganization will reduce organizational complexity, enable Pandora to execute with more speed and agility, and add critical capabilities required to support growth”, CEO Alexander Lacik said in a press release announcing the changes.
Lacik said the change would allow feedback from customers to translate into new concept creations at a quicker pace.
As a result of the reorganization, David Allen, president of Pandora EMEA, will step down from his position but stay with the company.
Kenneth Madsen, current president of Pandora Asia Pacific, will leave the company.
Pandora operates in 100 markets, which will now be grouped into 10 clusters with each cluster led by a general manager who will be based in the largest market in each cluster.
Sid Keswani, president of Pandora Americas, will become president of the North America cluster, which will include the United States. (Latin America, which was part of Pandora Americas, will be part of a different cluster.)
Keswani is based in Baltimore, where Pandora has its North American headquarters.
Pandora wants to bolster its retail skills.
As part of the new system, the general managers will report to the chief commercial officer, a newly created position.
The external candidate will be announced shortly, said Pandora, and is set to join the company’s executive team in the second quarter of this year.
The CCO will report to Lacik and be tasked with improving Pandora’s global retail skills including global merchandising, store development, planning and execution.
A new department called “network and franchise management” will also be created to support its global franchise partners.
Pandora is separating old business from newer ventures.
Pandora is setting up two global business units. One will oversee core products, like its charms, and the other will oversee newer products.
The new setup is expected to “offer more impactful products and marketing concepts and a more consistent consumer experience across markets,” Pandora said in the release.
These units will report to Carla Liuni, the newly appointed chief marketing officer and former Bulgari executive who starts at Pandora on March 20.
The company also recently appointed Erik Schmidt as its chief human resources officer.
Pandora is going all-in on tech and data analytics.
Pandora is establishing a global business services center to make its transactional processes more scalable and efficient.
In January, the jeweler announced the creation of a new Copenhagen-based digital group, consisting of software engineers, designers and analysts, established to boost its digital presence and data use.
The group is set to be up and running next month.
Pandora said it expects to hire around 80 new employees in 2020, including product managers, digital engineers, operations managers, strategy managers and data analysts.
“How we derive the benefits from technology and data to create a great customer experience is key for us as a global brand,” Chief Digital and Omnichannel Officer David Walmsley said in release announcing the creation of the digital hub back in January.
Pandora doesn’t expect the job cuts to result in cost savings.
The company’s financial guidance for 2020 remains unchanged.
The reorganization will translate into one-time costs of 200 million Danish kroner ($300 million), mostly related to severance payments, consultancy support, recruitment costs and other costs associated with closing down the regional offices.
Its total restructuring costs will amount to 1.3 billion Danish kroner ($1.95 billion) in 2020.
Pandora said the cost savings of eliminating 180 employees will be limited and are expected to be offset by costs related to “further strengthening” the company.
The changes are set to go into effect April 2.
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