The top brass at retail giant Woolworths (WHL) have decided to take a 30% pay cut for the next three months as the nationwide lockdown bites into the company’s revenues.
This is as the company warned investors that the temporary closure of non-food and decline in its stores will see its profits for the year to end June plunge by 20%.
Woolworths in a statement on Monday morning told shareholders that it is actively pursuing operational steps and considering strategic options to best mitigate the impacts of the crisis.
“In recognition of the challenging circumstances, the WHL Board, Group CEO and senior Executive team members have decided to forego up to 30% of their fees and salaries over the next three months,” the retailer said.
“The savings arising from this will be used to provide additional financial support to staff who find themselves in extreme hardship as a result of the current crisis.”
New WHL CEO, Roy Bagattini, only joined the group in February, replacing Ian Moir who had a tumultuous tenure at the retailer.
The company, under Moir’s leadership, had to write off billions of rands in its disastrous $2 billion acquisition of Australian retailer David Jones in 2014.
