Tools and industrial supplier Cromwell Tools is to cut circa 200 jobs, including some at its Leicestershire headquarters.
LeicestershireLive reported that the firm is “simplifying its structure” and cutting costs through the move.
UPDATED: Cromwell Tools has confirmed to Torque that the team members are mainly in non-customer-facing areas and that it is committed to being transparent and to manage the process with fairness and respect.
Owned by global industrial supplies and equipment provider Grainger, Cromwell has its World Distribution Centre in Wigston, just outside Leicester, where it is understood the majority of the jobs will be lost.
Cromwell said that despite the move it is investing in “digital, supply chain, customer service and more sales people”.
The full statement passed to Torque reads:
“Cromwell is investing in the business in areas that matter most to customers, including in digital, supply chain, customer service and more sales people. We are also working to take cost out of the business by simplifying our structure, to make it easier for customers to do business with us, while making the company appropriately sized for a £250m business. This means that approximately 200 team members, mainly in non-customer-facing areas, could leave the company. These are proposed changes and we are in consultations with team members to hear their perspectives at this time.
“Significant thought has gone into this and Cromwell is committed to being transparent and to manage the process with fairness and respect. We propose to offer an enhanced redundancy package for team members in addition to their contractual notice period, along with outplacement and other support.
“Cromwell has a clear strategy to remain a strong business for years to come. We are committed to being the easiest company to do business with, which includes offering the services and solutions customers need to keep their operations running and people safe.”
12 months ago, Cromwell created around 170 jobs at its then new 22,000 sq ft office in Quay House, Dudley.
Owner Grainger’s latest financials saw solid growth despite the global demand environment weakening.
Cromwell Tools has roughly 1,800 employees and 67 distribution centres worldwide.
Cromwell Tools was founded in the UK in the Leicester region in 1970, in Wilberforce Road. Grainger acquired the business in 2015 and went on to launch Zoro – an online fastener and tool supplier – into the UK at the start of last year.