The major B&Q chain is set to lay off 650 workers: what we know.

Layoffs at B&Q

According to The Sun: B&Q plans to cut over 650 jobs as part of the optimization of its retail structure.

This major player in the home goods market aims to reduce the number of deputy managers, sales managers, and team leaders in 318 stores and at its office. This was reported by Retail Week.

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If these plans are realized, cuts will affect 672 jobs, mostly in stores, and another 65 at the central office.

B&Q is consulting with affected employees and offering alternative positions or support packages for those who may not be able to transition to a new role.

“Over the last few years, we have rapidly evolved to provide our customers with the best retail experience,' said B&Q CEO Graham Bell.

“We have physically changed our processes so that our stores, apps, and online services are fully integrated, helping DIYers get more choice, speed, and convenience. And we need to continue to evolve.”

“Today’s news will ensure our ongoing evolution and growth in market share by prioritizing resources where we can best help our customers.”

B&Q has over 300 stores in the UK and Ireland and sells more than 30,000 products in stores, with another 300,000 available online.

Challenges in the home goods sector

The home improvement sector is facing a significant downturn following the pandemic-driven boom, as economic difficulties become increasingly apparent.

Due to budget constraints among households and stagnation in the real estate market, consumers are postponing or canceling discretionary projects such as new kitchens and bathrooms.

This challenging trading climate is impacting major retailers.

Kingfisher, which owns B&Q and Screwfix, reported a 35% drop in profit before tax to £307 million for the year ending in January, while adjusted profits fell 7% to £528 million.

Competitor Wickes also experienced a sharp decline in profits last year.

Group revenues decreased by 1% to £1.55 billion compared to the previous year.

The home goods sector has struggled to withstand several serious challenges in recent years.

Window and door specialist Safestyle announced bankruptcy in late 2023, while Everest filed for bankruptcy for the second time in spring 2024.

In July 2024, flooring retailer Tapi struck a multimillion-pound deal to rescue the Carpetright brand and dozens of stores.

Tapi acquired 54 stores from the chain and two warehouses in a pre-pack administration deal that saved 300 jobs.

The biggest blow was the bankruptcy of Homebase in November 2024, which led to the closure of dozens of stores.

The DIY chain was partially rescued by billionaire Chris Dawson, owner of CDS Superstores, the parent company of The Range and Wilko.

Dawson's intervention aimed to save “up to” 70 stores, preserving 1,600 jobs and the Homebase brand.

B&Q, like many other companies in the sector, is feeling pressure from economic changes. Decreased demand and consumer spending are forcing companies to seek ways to optimize. B&Q's decision is not only about workforce reductions but also reflects a global trend in the home goods industry, where players face new challenges. Given the current market situation, monitoring the further actions of companies in this sector will be crucial.