The Reject Shop rocked by job cuts as Australian roles go overseas
Workers across The Reject Shop’s head office have been let go as part of a redundancy round just a year after a Canadian retailer led a $260million takeover to claim the budget giant.
Australia’s discount chain cut several jobs in their head office department earlier this month – the second since Canadian retailer Dollarama’s acquisition of the company was completed.
Some roles have already been off-shored to Dollarama’s El Salvador division.
‘Recent organisational changes supporting this transformation included continued hiring and only a limited number of redundancies,’ a spokesperson said.
‘Decisions affecting roles are carefully considered, with redeployment opportunities offered where available and appropriate support provided to those affected.’
The news comes just days after The Reject Shop’s former property project manager, Jodi Long, said she was made redundant by the retailer in July via a short Teams call.
‘I just felt sick, and I’m thinking, don’t cry, don’t cry because at 54, I’ve never had that happen before,’ Ms Long said. ‘It was just so cold. I hung up and burst into tears.’
Ms Long, who was let go five months after The Reject Shop headhunted her from her previous role, said she was read a short script before being offered a different position with a $30,000 pay cut.
Workers across The Reject Shop’s head office were let go earlier this month.
It comes just one year after Canadian retailer Dollarama led a $260 million takeover of the budget giant
The Reject Shop’s former property project manager, Jodi Long, was made redundant in July via a Teams call and said she was left in tears by the ordeal
‘Which is its own quiet insult: you don’t expect to be let go from a job you didn’t even apply for,’ she wrote in a LinkedIn post about her experience.
‘For four weeks I’ve carried a private shame about it, the kind that doesn’t announce itself but sits under everything. I’ve told people I’m “between things.” I haven’t said the word redundant out loud very often.
‘I suspect I’m not the only person who has sat with a private shame about something that was never actually shameful – it was just a decision made in a boardroom by people who didn’t know what they were deciding, five months after they’d talked me into being there.’
Ms Long also noted Dollarama’s takeover of The Reject Shop but added there were ‘real plans’ in place for expansion.
It comes as several Reject Shop stores across Australia have been seen transitioning away from the iconic red and yellow branding to Dollarama’s signature green and gold.
The full transition isn’t expected to be completed until 2027 but up to 80 stores are expected to be updated this year.
Dollarama also expects to open between 15 and 25 new stores by the end of 2026, with a target of 700 stores by 2034.
Retail experts say the expansion will undercut several of Australia’s biggest retailers.
The Shop, Distributive and Allied Employees’ Association worked with The Reject Shop workers last month on a new pay agreement
Several Reject Shop stores across Australia have been seen transitioning away from the iconic red and yellow branding, to Dollarama’s signature green and gold
‘They’ll have more stores in Australia than Aldi has today, retail expert Gary Mortimer told 7News in May.
‘It’s really set to shake up the discount department store sector.’
Mr Mortimer also said Dollarama’s global bargaining power would help drive down prices at home.
‘They’ll have global buying power. You’re buying for over 200,000 stores in Canada and you can totally extend and leverage that buying power to get lower prices here,’ he said.
The remaining stores are expected to operate as normal under The Reject Shop banner as Dollarama’s branding is slowly introduced.
A spokesperson for The Reject Shop confirmed there are no further organisational changes or redundancies planned at this stage.
The Daily Mail has contacted Australia’s Services Union for comment.
