London Drugs to cut about 80 retail positions

Company confirms role reductions amid retail leadership restructuring

London Drugs plans to cut about 80 positions, roughly one per cent of its workforce, as part of its retail leadership restructuring, according to an internal letter obtained by Business in Vancouver. In the letter dated July 14, Nick Curalli, president and chief operating officer of the Richmond-based retail chain, said the company plans to reduce positions from its retail operations team. "With careful consideration of both internal and external factors, London Drugs has made the difficult decision to standardize the management compliment per store, resulting in reductions in some locations," wrote the letter.

A spokesperson for London Drugs did not comment on the letter but confirmed the company's decision to reduce roles across the organization. Naomi Perks, communications manager for London Drugs, said the role reductions are part of the company's efforts to change its store-level leadership structure. "Like many retailers, we continue to adapt to changing customer expectations and an evolving and increasingly competitive retail environment," said Perks.

Curalli said in the letter that London Drugs also communicated to its employees the restructuring of its merchandising function in March, including a transition to a "category management model." The retailer said the changes are intended to increase efficiency, reduce operating costs and strengthen its competitiveness, according to the letter. Curalli said London Drugs has not previously undertaken workforce reductions of this nature.

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