Mothercare plc (LON:MTC) reportedly told 200 head office employees on Wednesday that their jobs will be axed as part of a restructuring plan.
According to Sky News, net job losses are expected to total 150, with 50 new roles being created in the reorganisation.
The mother and baby products retailer is targeting £19mln in cost savings under a rescue deal struck with creditors earlier this year.
In June Mothercare received creditor approval for a company voluntary arrangement, an insolvency process that allows a business to close stores and negotiate rent cuts on remaining sites. Mothercare has earmarked 60 stores for closure and negotiated reduced rents for 19 others.
READ: Mothercare shares plummet as it plans to raise £32.5mln and close 60 stores
Fierce competition from online retailers and supermarkets have dragged on Mothercare’s sales and profits. Last year the company’s loss widened to £79.4mln from £9.7mln a year ago and total sales dropped 4.8% to £437.6mln.