Lloydspharmacy set to make redundancies

Retail Week understands up to 200 staff could be made redundant early next month following a 90 day consultation on 1,000 jobs.

The positions are likely to be in the company’s IT, finance and human resources departments at its Warwickshire head office.

The consultation was triggered by a change to the retailer’s structure earlier this year by German parent Celesio. A new UK country board to oversee a shared operations strategy with its sister wholesale firm, All About Health, was formed in March.

The two businesses are understood to be in the process of harmonising the terms and conditions of staff contracts which could lead to changes to pay and benefits for those who remain.

Former AAH group managing director Mark James is chief executive of the newly formed Celesio UK country board.

A spokeswoman for Celesio UK said the restructure process is still “ongoing” but declined to give further details.

She said: “We can confirm that the head office functions of Celesio UK businesses Lloydspharmacy and AAH are being restructured. The process is still ongoing and as such we are not able to confirm details at the moment. We anticipate we will be able to provide more information in the next two to three weeks.”

A source close to the retailer said there was “deep unrest” within the business and that “morale is at rock bottom”.

The spokeswoman said: “Times of change can often be unsettling for those involved in a restructure and inevitably there will be those who are unhappy with the outcome, particularly if they do not have a role in the new structure. However, we do not agree that there is ‘deep unrest’ or that ‘morale is rock bottom’. Most people who worked in the old Lloydspharmacy and AAH headquarters have found positions in the new Celesio headquarters.”

She added: “Since the proposed restructuring was announced we have communicated regularly with employees to keep everyone updated with developments, we have involved those affected in an extensive consultation exercise which has not yet concluded and we have provided - and will continue to provide - extensive support throughout.”

Former managing director Tony Page exited in January after just a year in the role and will not be replaced under the new structure.