The Warehouse Group plans to eliminate about 270 head office positions and outsource additional functions in an effort to slash costs and restore sustainable profitability.
In an NZX announcement, the company confirmed a streamlined, “leaner” head office structure, incorporating co-sourcing with Tata Consultancy Services (TCS).
This shift forms part of a broader cost-reset programme first outlined in November 2025, focusing on labour and non-labour savings to drive the company’s total business expenses below 31% of sales.
TCS will assume support for various corporate and administrative functions, such as portions of technology, accounting, call centres, and payroll.
The Warehouse Group noted that this shift provides access to cutting-edge systems, greater capacity, and AI-powered tools on a scale unattainable in-house.
“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,” The Warehouse Group chief executive Mark Stirton said.
The Warehouse Group anticipates roughly $6 million in redundancy costs this year from the job losses.
Although most affected roles will exit the business, Stirton noted that consultations are ongoing in certain areas.
“We’re supporting everyone affected with care during what we appreciate is a difficult time for them,” he said.