DavidsTea announces layoffs in Montreal

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Citing troublesome market circumstances, DavidsTea has introduced the “momentary” layoffs of 15 per cent of the employees at its Montreal head workplace.

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In a communiqué Thursday, the corporate stated it was implementing a number of cost-cutting measures “on the street towards profitability.”

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It was not instantly potential to find out what number of jobs might be affected by the announcement. The corporate has introduced a plan geared toward adjusting the “prices construction within the context of persistent macroeconomic uncertainty.”

The agency famous that there had been a 25-per-cent drop in fourth-quarter gross sales ending Jan. 28 in contrast with the earlier 12 months, which might be round $29 million to $31 million.

“Like many different retail manufacturers, we’ve skilled troublesome market circumstances in the course of the fourth quarter, shopper spending has been affected by inflation and the rise in rates of interest, which has diminished demand,” stated Sarah Segal, firm CEO and model chief.

The corporate firmly believes in its long-term progress plan. It reported a money steadiness of about $22 million and “no debt and robust working capital.”

The corporate is anticipated to offer extra particulars on its costs-control plan in the course of the announcement of fourth-quarter outcomes for 2022 scheduled for April 28.