Matalan to cut costs by letting go staff

Matalan , the discounting retailer, in a move to cut costs, is expecting to lay of temporary Christmas personnel and slashing employee's working hours. The changes are expected to affect at least 1,000 employees in 40 stores in the North, though the company is reviewing staff levels at all 198 stores, according to the Daily Mail. A source told the Mail: 'They took on too many temps. They are cutting hours to get back on budget. If a store is not performing, it will recruit fewer staff.' Hargreaves, the company responsible for Matalan's imminent takeover, is thought to be initiating the cost-saving changes.

Shopworkers are outraged. 'Next week is when trading peaks,' said one whose hours have been cut dramatically. 'They are shooting themselves in the foot.' Hargreaves declined to comment. Matalan's headstrong founder, who owns 53% of the business, revealed in July that he was preparing a bid to take it private.