The cuts this week will be part of
plans to cut several thousand people from M&S ‘workforce.
pandemic, Marks & Spencer (M&S) will serve notice this week of imminent
plans for hundreds of job cuts as it becomes the latest prominent retailer to
restructure its staff.
announcing redundancy plans, joining the likes of the John Lewis Partnership,
Boots and Debenhams in what has quickly become a bloodbath on the high streets
were expected to be lost as chief executive Steve Rowe is accelerating ongoing
business restructuring in the coming months.
dubbed ‘Never the same again’ by the company at its results two months ago.
substantive cuts to its workforce in the initial phase to be announced this
week, since the COVID-19 crisis forced the temporary closure of most of its
shops in March.
most famous retailer to have taken money from taxpayers through the Coronavirus
Job Retention Scheme, only to announce significant numbers of redundancies
total of 78,000 – were furloughed under the government’s programme to
discourage companies from laying off workers.
work, although the company has not provided a precise number.
whether, like rival Primark, it will reject the chancellor’s recent offer of a
£1,000 bonus for every furloughed employee who resumes working.
of permanent job cuts-even if they are not the same workers as those who have
been furloughed-will make it extremely difficult for the board of M&S to
accept the bonus payments from the Treasury.
companies have cut hundreds of thousands of jobs across the economy, with
notable examples including British Airways, BP, Royal Mail and the Upper
Crust-owner SSP Group.
the heads of individual business units-including retail and property, clothing
and home, food and international-are all looking at their cost bases.
reveal their plans in the coming months at different points, with the total
amounting to several thousand, according to people close to the plans.
close between 110 and 120 of its full-line clothing stores in 2018, of which
more than half have now been shut down.
Mr. Rowe said: “While some customer habits will return to normal, others
have forever changed, the trend toward digital has accelerated, and changes in
the shape of the high street have brought forward.
importantly transformed and we have discovered that we can work in a faster,
leaner, more effective way. I ‘m determined to act now to capture that and
deliver a renewed, more agile business in a world that never again will be the
“central support costs and headcount will be examined at all levels,”
while £1bn in cash and cost-saving actions would be associated with “other
changes, including a more streamlined support centre, changes in leadership
structure and negotiations with landlords on lease contract terms.”
month, Chairman Archie Norman asked shareholders at the beginning and end of
the summit to vote remotely on their confidence in the company’s future, and
saw a slight increase in optimism by the time it finished.
freeze and then confirmed that he would not take an annual bonus either for the
last year or this financial year.
take-home pay had been reduced because, over the next three years, he agreed to
reduce his cash pension supplement to zero without any alternative or
evening said of the proposed job losses: “We’re not commenting on
speculation, and if and when we have an announcement to make, our colleagues
will be the first to know.”