Destination Maternity has initiated job cuts which would generate cost savings of $4 million to $4.5 million on a projected annualised basis. The company, which operates the Motherhood, A Pea In The Pod and Destination Maternity retail chains and e-commerce sites, aims to become a more efficient and profitable organisation through this initiative.

The workforce cut back is expected to result in a one-time severance charge of approximately $1.3 million to $1.5 million during the second quarter of 2019, with severance benefits paid out ratably. The company reported a decrease of 8.7 per cent in its net sales for Q1of fiscal 2019. Impacted by the net closure of 32 owned locations and 88 lease locations, the company sales decreased to $94.2 million, Net income in the quarter also declined by 50 percent to $100,000 from $200,000 in the prior-year period