Gerry Weber to axe jobs

German fashion chain Gerry Weber is prepared to axe a series of jobs, as the company hopes to remove any weak areas in the business following a sluggish performance during the first half of its financial year 2014/2015, during which operational profit dropped 26.8 percent to 36.2 million euros.

It remains unclear which roles within the company will be cut, but Chief Executive Officer Ralf Weber assures that no employees will be fired in the immediate time. Rather, the company aims to slim down its staff, which is approximately 7,000, by not extending temporary contracts or fulfilling vacant positions, according to an interview with Manager Magazine. Weber stressed that the cuts are not part of any "massive cuts."

Gerry Weber will also be cutting back on its rapid expansion plan for its home market of Germany, and is reassesing plans to open its debut stores in the US this winter. The decision comes a year after Gerry Weber acquired the fashion chian Hallhuber in the hopes of growing at a faster rate. Instead the company saw its staff cost and rental costs increase at a faster rate than its profits, which lead to the company issuing a profit warning in June.