One of Britain's biggest carpet retailers is axing more than 25% of its head office staff as it grapples with a protracted downturn in trading.

Sky News understands that Carpetright, which is privately owned, notified staff on Tuesday morning that roughly 70 jobs would be lost as part of a cost-cutting process. The redundancies will affect Carpetright's base in Purfleet, Essex, but will not impact on store numbers or headcount in its shops, according to insiders.

Carpetright trades from more than 285 stores and concessions across the UK, with a further 120 outlets in Belgium, Ireland and the Netherlands. The company said its reduction in roles in areas such as IT and warehousing would allow it to reduce its cost base by about £22m.

Carpetright, which has been advised on its cost-cutting options by Teneo, reported substantial losses in each of the last two years. Founded by Lord Harris of Peckham, the chain has been hit by weaker consumer spending as well as competition from chains such as Tapi - which was run by Lord Harris's son prior to his exit.

Kevin Barrett, chief executive of Nestware Holdings, Carpetright's parent company, said in a statement issued to Sky News: "While we have worked tirelessly to navigate our current challenges, we understand the impact this restructure will have on valued members of our team. "Our top priority remains supporting those affected through this process.

"As with many businesses, we face ongoing challenges in today's tough economic climate." He added: "We've carefully examined our performance against operating costs, leading us to make difficult decisions to ensure the future success of our brand.".