About 130 jobs are expected to go at the Warehouse Group as the company looks to streamline its operations, but First Union says this number may rise.
The Group, which encompasses The Warehouse, Noel Leeming, Warehouse Stationery and Torpedo7, said in a statement to the NZX today that consultation had been taking place at the head office in Auckland and some regional centres.
The consultation had included combining the leadership of the Warehouse and Warehouse Stationery.
Separately, there were plans to combine the leadership of Noel Leeming and Torpedo7.
The consultation also included "moving the support structures that services these brands, to be group-wide".
First Union retail and finance secretary Maxine Gay said the union was relieved the cuts weren't at the retail level at this stage.
"The company has made it clear to us as well as in their statement that this isn't going to affect any of the people that are in the shops and distribution centres," Gay said.
"We are pleased that this restructuring has been limited to head office. We're sorry for those workers who are losing their jobs but relieved that the retail workers - the shop and distribution workers - are unaffected at this stage and we hope it remains that way."
Gay said the company had not ruled out future redundancies to them, saying the company was keeping its cards close to its chest.
"We didn't think it would be the really high extravagant numbers that were first talked about around the restructure, but I'll be surprised if 130 is where it stops at the head office level, given how much duplication we know exists," she said.
Chief executive Nick Grayston said the restructure was needed to drive sustainable profitability and reduce complexity in a rapidly-changing retail market.
"Our teams have shared their views on our proposed changes and we can now confirm team structures," Grayston said.
"Discussions with team members are ongoing with a view to supporting those who are impacted through a redeployment process.
"Once the redeployment process concludes, with appointments made into newly formed roles, we will be able to confirm the number of people who may leave the business."
"At this stage, we are anticipating a net reduction of around 130 roles and we will be doing everything we can to support our team members during this time."
Estimated savings resulting from the restructure were between $15 million and $20m, which included salary savings, reduced external provider costs and other overheads, Grayston said.
One-time restructuring costs were estimated to be between $10m and $13m.
The changes would occur during the fourth quarter.