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Restructure at Moonpig

‘Simplifying operations’ sees 42 job losses as parent company separate businesses

 

MOONPIG’S parent company Photobox are set to make 42 people redundant at their London head office as part of a business restructure following recent losses.

The Telegraph newspaper reported yesterday, Sunday, July 7, that around 17 of the roles are linked to the reorganisation, the rest are down to their decision to outsource Moonpig’s customer services sector.
Photobox Group CEO Jody Ford told The Telegraph: “In order to enable each business within the group to simplify operations, we have decided to reorganise the internal operations.
“We thank these employees for all their hard work and dedication and will do all we can to support the affected individuals.”
The online personalised greetings and gifts sellers set up by Nick Jenkins in 1999, were bought for £120million by Photobox Group in 2011 and last year they bought smaller Netherlands-based rivals Greetz.
The firm said the restructuring will focus on “internal operations of the group around two autonomous businesses – Moonpig and Photobox” and will allow them to “simplify operations, fast track innovation and empower focus on customer priorities”.
With the two sides of the business to be run separately, Moonpig and Greetz will be led by current Moonpig MD Nickyl Raithatha, while the company’s photo personalisation brands – Photobox, Hofmann and PosterXXl – will have Christian Woolfenden, currently MD at Photobox and Hofmann, at the helm.
While Moonpig recently hit £100million in revenue following a decade of double-digit growth, group revenues were down by £10m to £315m for the year to April 30, 2018, although losses narrow from £47m to £35m.
Since 2016 Photobox Group have been owned by private equity firm Electra, who also back restaurant chain TGI Fridays, and last year they opened a new £20m HQ in London’s Clerkenwell, and currently employ 659 staff.
The company said they expect to “improve underlying profitability this year” despite “significant competition from other online and mobile specialists and other High Street retailers”.



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