Woolworths has announced it will be slashing 500 jobs as it continues to restructure its operations.
The struggling supermarket giant will take a charge of $959 million against its profit for the full year, resulting in a $766 million hit on after tax profit,.
Fiscal 2016 earnings before interest and tax now expected to be in the range of $2.55 billion to $2.57 billion.
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The retailer also said it will slow its stores roll-out and close underperforming outlets.
It is also separating its Big W and Ezibuy business, and wants to sell Ezibuy.
Woolworths Limited Chief Executive Officer, Brad Banducci, remained confident about the businesses position, saying the operating model review and turnaround measures implemented since February this year were showing real momentum.
“Five months ago I said we would work hard to get customers to put us 1st, to improve our culture and rebuild momentum,” Mr Banducci said.
“While we have had to make some tough decisions and this has ramifications for many of our team, we are confident we are putting in place solid foundations for the future and early results give us confidence we are on the right track.”