Country Road Group boss raises eyebrows for the bizarre way he kicked off a staff meeting to warn of looming job cuts
Country Road Group had its worst financial year ever and job losses are looming, CEO Raju Vuppalapati warned employees on Wednesday.
He told staff at their Melbourne headquarters that the company – whose labels also include Trenery, Mimco, Witchery and Politix – is facing a “perfect storm” of challenges and profits are plummeting.
But it was the way the CEO started the meeting that raised eyebrows among staff.
Mr Vuppalapati started the meeting with a lengthy ‘Recognition of Country’ speech before outlining how many of them could soon be out of a job.
Country Road Group’s revenue fell 13 percent last fiscal year, leading to a 66 percent decline in adjusted operating profit of $51.3 million, the company recently reported.
To reverse this trend, South Africa’s Woolworths Holdings, owner of Country Road, has been forced to undertake drastic restructuring and cost-cutting measures.
Employees were warned that the company was not “the best version of ourselves.”
“This is not who we are and not our potential… and 2024 has clearly told us that it is time to reset our business model,” Mr Vuppalapati told staff.
“This isn’t just about costs, this is about looking at how we go about bringing financial discipline to investing.”
Fashion giant Country Road has had its worst financial year ever, the company’s CEO told staff on Wednesday. The photo shows a woman modeling Country Road clothing
That’s what insiders said News Corp that the new leadership structure will be unveiled on October 16 and that new staff teams will be announced in mid-November, when job cuts are likely to be announced.
Staff were warned that a ‘mindset shift’ would be required as the company went through restructuring.
“We need to change our business model, an end-to-end overhaul of the structure, the way we work together… and ensure that all brands grow,” Mr Vuppalapati said.
The company will also examine the changing purchasing and supply chain in an effort to get cheaper deals from suppliers.
Mr Vuppalapati called Witchery a brand that had lost the magic that made it so successful a decade ago.
He said it and Mimco had to return to its tradition of a more stylistic company that advanced fashion.
Country Road Group, which is behind well-known brands such as Country Road, Trenery, Mimco, Witchery and Politix, has not only faced financial problems this year, but was also rocked by a sexual harassment scandal in July.
As a result, two top executives suddenly left the company and global boss Roy Bagattini flew to Australia to address staff and announce an external investigation into the complaints handling.
In response to this, Country Road Group has set up a ‘respect at work’ working group.
Mr Vuppalapati said staff surveys reported a sharp drop in morale.
“The surveys showed that we are not the best versions of ourselves,” Mr. Vuppalapati said at the meeting.
Country Road Group chief executive Raju Vuppalapati told staff in Melbourne the company needed drastic restructuring as sales fell
Country Road Group’s revenue fell 13 percent last fiscal year, leading to a 66 percent decline in adjusted operating profit of $51.3 million
‘The themes that emerged were trust, we need to rebuild trust, we need leaders who are visible.
‘Some reactions were confrontational.’
In a statement, Country Road Group said it was “embarking on a strategic business transformation plan to position itself for growth.”
“We are changing our business model to leverage our scale, capabilities and culture as a House of Brands,” the statement said.
“This allows us to focus passionately on delivering the best product and experiences for our customers.”