Flooring retailer Carpetright is axing around 70 jobs at its headquarters, equating to more than 25% of head office staff.

Carpetright   newest store front

The reason for the job cuts is said to be a downturn in trading as the carpet company battles weaker consumer spending and fierce competition.

The retailer is said to have notified staff this morning (May 7) that around 70 jobs will be lost as part of a cost-cutting process, according to Sky News. 

Insiders are reported to have said that the redundancies will affect Carpetright’s headquarters in Purfleet, Essex, but will not have any impact on store numbers or amount of staff it its shops.

Reduction in roles in areas such as warehousing and IT will enable it to reduce its cost base by roughly £22m.

Last month, Carpetright appointed advisers Teneo to look at multiple cost-saving options, following a period of losses and competition from the likes of Tapi.

Its latest Companies House filing showed that underlying losses before tax for the period reached £23.4m, down from a previous loss of £53m.

Kevin Barrett, chief executive of Carpetright’s parent company Nestware Holdings, said in a statement issued to Sky News: “While we have worked tirelessly to navigate our current challenges, we understand the impact this restructure will have on valued members of our team.

“Our top priority remains supporting those affected through this process. As with many businesses, we face ongoing challenges in today’s tough economic climate. We’ve carefully examined our performance against operating costs, leading us to make difficult decisions to ensure the future success of our brand.”