Woolworths to offshore hundreds of corporate jobs

Supermarket giant Woolworths is preparing to offshore hundreds of corporate positions, initiating consultations with affected staff on Tuesday. While the exact number of impacted employees within its 10,000-strong corporate workforce remains unconfirmed, reports suggest hundreds will be affected across departments including People, IT, and Finance.

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We have for many years had teams located throughout Asia and longstanding managed service arrangements in place.

A Woolworths spokesperson stated the decision is driven by the need to stay competitive against expanding international players in Australia and to maintain lower prices for customers. "We have for many years had teams located throughout Asia and longstanding managed service arrangements in place," the spokesperson said. "We regularly review these to ensure we are accessing the best global capabilities and lowering our costs, to ensure we are offering the best value for our customers."

The company emphasized its commitment to growth and local investment, noting plans to open 24 new stores in Australia and New Zealand within the next year, which is expected to generate approximately 2,500 jobs. This strategic shift follows similar moves by other major Australian companies, including National Australia Bank and Telstra, which are also relocating some operations offshore.

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We regularly review these to ensure we are accessing the best global capabilities and lowering our costs, to ensure we are offering the best value for our customers.

Despite the news of job offshoring, Woolworths' share price saw a modest increase of 1.75 percent by midday Tuesday, trading at $37.12. This follows a strong performance earlier in the year, where the company's first-half profit results impressed investors. Although net profit had fallen 49 percent due to a significant provision for remediating underpaid staff, the adjusted profit showed a 16 percent increase, exceeding analysts' expectations.

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As one of Australia's largest employers in a dynamic and competitive sector, we consistently reshape our business and find ways to be more efficient, to enable us to continue to drive growth and invest in local communities.