Major jewelry brand Pandora will let off 397 of its 27,000 employees. According to IDEX Online, 218 of these work in Thailand. According to Pandora, the move would “strengthen commercial functions, streamline manufacturing and shift resources to strategic priorities”.
Pandora’s CEO Anders Colding Friis commented: “We have made important progress on our 2022 strategy since we launched it last year, and are on the right long-term direction for Pandora […] The adjustments we announce today will reduce complexity and free up resources that we can add to our strategic priorities. The adjustments are also – together with our procurement program – necessary to protect our profitability”. Pandora added that these changes are expected to save around DKK 150 million ($23 million) on annual costs.
Last May, Pandora reported a 1% year-on-year decrease in revenue to DKK 5.12 billion ($809 million) in the first quarter of the year. Pre-tax profits totaled DKK 1.67 billion ($263.4 million), compared with DKK 1.88 billion ($297 million) in Q1 2017. The decrease is primarily attributed to a 9% drop in revenue from the Asia-Pacific region and a 16% decrease in revenue from the Americas. However, revenue from the Middle East, Europe and Africa was up 15%. Earlier in 2018, Pandora said it plans to counter weak growth in the US in 2017 and “a current lack of innovation” by doubling its new product launches by 2022.
