Hamleys cuts IT budget and staff

Toy store reduces technology spend as part of corporate restructuring drive

Oakley has had his IT budget trimmed

Hamleys has had to slash its IT budget and reduce the department’s headcount as part of a restructuring plan at the world-famous London toy store.

Technology spend has been cut by about five to 10 per cent, while about 30 per cent of the firm’s IT staff were made redundant, head of IT David Oakley told Computing.

The corporate reshuffle, aimed at cost-cutting, has resulted in the departure of some of the firm’s top executives, including its chief operating officer and director of buying and merchandising.

Hamleys chief executive Gudjon Reynisson said the strategic review and a reduction in central costs is necessary to improve the company’s structure, which needs to be “flatter, simpler and more flexible.”

According to Oakley, the business is giving a sharper focus to its usual policy of renegotiating supplier contracts, but will press ahead with some essential projects in the front end, in systems supporting activities such as “getting cash from the till”.