Up to 10 per cent of Kathmandu’s head office employees in Australia and New Zealand could lose their jobs, after the company announced it is reviewing its head office structure.

“The company will closely review costs and structures in recognition of a significant reduction in profitability in FY2015, compared to FY14 and previous years,” the clothing retailer said.

Kathmandu CEO, Xavier Simonet, said the company was taking decisive action to address the recent underperformance in sales and profit and was looking at all areas of the business.

“I am confident the outcome of the review will enable us to continue to invest in our growth strategies and deliver improved results for our shareholders,” Simonet said.

Kathmandu is currently the target of a takeover bid from New Zealand retailer Briscoe Group, which owns a 19.9 per cent stake in the company.

The Kathmandu board has advised shareholders to reject the offer, which is worth more than $300 million.

The Briscoe Group responded, saying its proposal fully reflects the value of Kathmandu shares and would stay on the table until September 17.

Other areas Kathmandu has identified to improve performance include focus on innovative and distinctive products, optimisation of existing store network, improved digital and social media communication and omnichannel functionality.

The review is expected to be completed by the end of September.