News: WOW Woolworths updates on operating model review

July 25 (Reuters) - Woolworths Ltd (WOW) :

• Update on operating model review (WOW)
• Group review leads to restructuring costs of $959 million or $766 million after tax to be recognised in our financial year 2016 results
• 1,000 team members moved from group office into businesses"
• Decisive action taken on general merchandise with restructuring costs of $460 million, including a $309 million impairment of ezibuy
• Says "further 500 roles to be permanently removed from support office and supply chain"
• Says big w and ezibuy separation completed
• New Australian supermarkets rollout slowed significantly and provision taken to close underperforming or unprofitable stores" *"FY 2016 EBIT from continuing operations before significant items of $2,550 -$2,570 million"
• Ezibuy business has been fully separated from the big w business
• We are closing our hume distribution centre in Victoria in FY 2019
• big w is expected to report a loss of $12 - 17 mln and ezibuy is expected to report a loss of $13-18 mln before significant items for fy16