Debenhams is set to axe around 320 store management roles as it seeks to deliver £10m cost savings.

The department store chain, which is attempting to carve out a new strategy in an intensely competitive market, issued a profit warning following a poor performance over Christmas and warned that there were job cuts to come.

Debenhams will aim to redeploy the staff affected by the cuts, but there is a risk of redundancies.

A spokeswoman said: “As part of the implementation of the Debenhams Redesigned strategy a review of our store structure has been undertaken.

“The review has identified significant cost savings by reducing the complexity of management roles in stores as well as processes to optimise and standardise ways of working.

“We are currently consulting with individuals affected and will seek redeployment opportunities where possible. We envisage our new structure being fully in place by the end of March.”

No stores will close as a result of the changes.

Debenhams stated last year that 10 stores were in danger of becoming unprofitable and could potentially close. Two stores in Eltham and Farnborough closed at the end of last month as part of that review, affecting around 90 employees.

Debenhams’ decision comes as retailers across all sectors move to cut their costs by axing store management roles as the cost of running a multichannel business, a rising wage bill as a result of the national living wage and a slowdown in consumer spending combine to create a perfect storm.

Already this year, Morrisons, Tesco and Sainsbury’s have all moved to cull thousands of roles while hundreds of jobs are at risk at Arcadia, B&Q and M&S.