Marks and Spencer looks to stem sales slide with HQ job cuts
Marks and Spencer has axed over 500 jobs at its head office as it looks to claw back £30m in savings.
M&S
The cuts come under new chief executive Steve Rowe looks to halt the retailer’s sales slump. The cuts will be felt across its three London offices. while in a further efficiency drive some 400 jobs in IT and logistics will be moved outside the capital.
The cuts followed consultation with employees and were announced on Monday (5 September). The cuts will not affect shop floor staff but may strain employee relations following a very public row over pay and conditions.
"It is never easy to propose changes that impact on our people, but I believe that the proposals outlined today are absolutely necessary and will help us build a different type of M&S - one that can take bolder, pacier decisions, be more profitable and ultimately better serve our customers," said Rowe.
Last Friday (2 September), the retailer said it was offering a multi-year pay guarantee that would make its staff “amongst the highest paid in UK retail” along with “one of the best benefits packages”. However, critics claimed it would actually cost staff as the retailer scraps premiums for working Sundays and anti-social hours.
Of the deal Marks and Spencer retail director, Sacha Berendji, commented: “We’ve listened to our colleagues, acted on their feedback and are pleased that we’ve reached an outcome that gives enhanced support for our colleagues as well as making necessary changes to our business.
“The changes will reward people in a fair and consistent way, simplify and modernise our business and help us attract and retain the best talent so we can continue to provide great service for out customers.”
Steve Rowe replaced Marc Bolland as chief executive earlier this year with analysts predicting he’ll look to shrink Marks and Spencer’s store estate as online rivals continue to hit the retailer’s clothing business.
The Sunday Telegraph also reported last week Rowe was planning to cut parts of Marks and Spencer’s international business, including a prominent store of the Champs-Elysées in Paris.