Woolworth Managerial Communication

8/7/2019 Woolworth Managerial Communication

1/11

A New Image and a New Workforce


2/11

Allegationsy We, The Venator Group, has been accused with

following a practice of age discrimination against our

employees.y The USEEOCs claims:

y We laid off 400 employees based on their age

y Replacements were mostly teenagers

y We did not allow these employees to apply again for thenew part-time positions


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Contexty When the CEO, Roger N Farah joined, the company

was in dire straits

y

A debt of over $1.2 billiony The company was insolvent.

y It was on the verge of bankruptcy which meant thethousands of employees of this organization would have

lost their jobs.


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Handicapsy The current handicaps of the organization

y Our flagship dime stores were bleeding cash.

y The company had antiquated inventory systems.y Our stores were not equipped to tally daily sales.

y A major problem was we were present in outdatedformats, hurting profits and thus furthering our inability

to generate cash for a turnaround.


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Options1. Declare bankruptcy and liquidate our assets

2. Try to improve the system and the efficiency to

achieve turnaround within the existing structure3. Go for complete restructuring and do whatever is

necessary to make the company solvent again.


6/11

Option 1

It would haveinvolved laying

off the entirestaff

Option 2

Given theenormous size

andcomplexity ofthe problem athand, itwouldve

delayed butprobably notavoidedbankruptcy.

Option3

Take whateversteps

necessary,even of theyare harsh, forthe revival ofthe company

and in turnsave themajority of theemployees.


7/11

y Option 3 needed us to increase revenue and cut costswhich involved

y

Restructured 41 divisions to 21 store formats.y Sold off our headquarters which generated the much

needed cash.

y Entered into youth-targeted markets of sports.

y

Closed down 400 stores which were loss making andlaid off employees.


8/11

y Reasons why these employees were laid off

o We were reducing the number of stores, hence the

employees.o Transform wage bill structure from full time to part time

to reduce costs.

o We laid off employees whose wages, and not ages, werehigh to reduce costs.


9/11

o The new sports stores, which were primarilytargeted at a younger consumer required a

youthful image.o We couldve laid off employees who were less

technology savvy and whose productivity was lowversus their pay


10/11

Conclusiony We have empathy with the employees who were laid

off. But for the greater good of the remaining

employees, it was a necessary action. We wish we werein better circumstances and had a less painfulalternative.


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THANK YOU

y Presented By Group 2y Aditya Somani

y Akash Gaurav

y Birma Ram

y Kshitij Sharma

y Shrey Kumar Singh

Documents

Woolworth Managerial Communication