Woolworths parts ways with Australian CEO John Dixon
‘Following a strategic cost review, the group has taken the decision to simplify its Australian regional leadership structure’
Woolworths’ Australian CEO, John Dixon has been made redundant.
David Jones CEO David Thomas and Country Road CEO Scott Fyfe will now report directly to Woolworths group CEO Ian Moir, the retailer said on Tuesday morning.
Dixon had resigned as an executive director with effect from Monday, Woolworths said.
The retailer’s 2017 annual report showed Dixon, whose remuneration was R23m, was the group’s second-highest paid executive after Moir, who received R35m.
This placed Dixon’s pay well ahead of Woolworths SA CEO Zyda Rylands’s R9m, chief operating officer Sam Ngumeni’s R7.5m, and finance director Reeza Isaacs’s R7.3m.
“Following a strategic cost review, the group has taken the decision to simplify its Australian regional leadership structure,” Woolworths said on Tuesday morning.
“The role of regional CEO has been discontinued and consequently John Dixon will leave the group.”
Tuesday’s statement came a week after Woolworths warned shareholders that its earnings for its 2018 financial year would fall by more than 20%.
Woolworths is scheduled to release its results for the 52 weeks to June 24 on August 23.
During the first half of its 2018 financial year, Woolworths booked an impairment of A$712.5m on David Jones.