Pandora announced yesterday that it has drawn up plans to make some changes which will “strengthen commercial functions” and allow the Company to “shift resources to strategic priorities”. The Company called the changes “organisational adjustments” made in order to “align functions across the Company, support strategic priorities and protect profitability”.

As a result of the changes, 397 employees out of a total of 27,000 employees “will leave the company”, Pandora said. Out of these, 218 are in Thailand.

Amongst the changes envisaged by Pandora is one to strengthen cooperation between sales, marketing and merchandising.

The Company plans to optimise support functions, including providing more standardised reporting and processes.

Further, it will endeavour to ensure scale benefits from selected regional shared service centres; and implement a centralised operations and supply chain structure to streamline manufacturing.

Pandora also plans to shift more resources to “strategic priorities” such as digital and e-commerce.

CEO Anders Colding Friis said: “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.”

He went on to explain: “PANDORA has nearly doubled in size in the past three years, and our ways of working have also grown rapidly and resulted in different organisational set-ups in different parts of the company. 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 programme – necessary to protect our profitability. Sadly, the changes mean that good employees will lose their jobs, and we are supporting them in the best possible way.”

Pandora expects that these various changes will reduce annual costs by around DKK 150 million from 2019 onwards.