Marks & Spencer today announced it will axe 7,000 jobs as part of a further shake-up of its stores and management in the face of the coronavirus crisis.
The London-based retail giant revealed the roles were set to go over the next three months across shops, regional management and its support centre.
M&S, which employs 85,000 people worldwide, expects a ‘significant’ number of roles will be cut through voluntary departures and early retirement.
The group said it will also create some jobs through investing further in online warehousing and its new ambient food warehouse.
It comes as M&S revealed total sales in its hard-hit clothing and home arm plunged 29.9 per cent in the eight weeks since shops reopened.
Marks & Spencer has said it plans to cut around 7,000 jobs over the next three months
Store sales fell 47.9 per cent but online surged 39.2 per cent. It said sales declines were improving but that it was ‘clear that there has been a material shift in trade’.
A spokesman said: ‘Whilst it is too early to predict with precision where a new post-Covid sales mix will settle, we must act now to reflect this change.’
It comes as M&S revealed total sales in its hard-hit clothing and home arm plunged 29.9 per cent in the eight weeks since shops reopened.
Store sales fell 47.9 per cent but online surged 39.2 per cent. It said sales declines were improving but that it was ‘clear that there has been a material shift in trade’.
‘Whilst it is too early to predict with precision where a new post-Covid sales mix will settle, we must act now to reflect this change,’ the company said.
Chief executive Steve Rowe said: ‘In May we outlined our plans to learn from the crisis, accelerate our transformation and deliver a stronger, more agile business in a world in which some customer habits were changed forever.
M&S GROUP REVENUE BY DEPARTMENT (% CHANGE TO LAST YEAR)
| DEPARTMENT |
19 WEEKS TO AUGUST 8 |
13 WEEKS TO AUGUST 8 |
8 WEEKS TO AUGUST 8 |
| Clothing & Home |
-49.5 |
-38.5 |
-29.9 |
| Food |
-1.1 |
2.5 |
2.5 |
| International |
-31.9 |
-24.6 |
-19.9 |
| Group |
-19.2 |
-13.2 |
-10 |
| Clothing & Home.com |
32 |
42.2 |
39.2 |
| M&S.com |
38.9 |
46.9 |
40.7 |
‘Three months on and our Never the Same Again programme is progressing; albeit the outlook is uncertain and we remain cautious.
Persimmon bounces back as it returns to pre-lockdown levels
Housebuilder Persimmon today said building on its sites returned to pre-Covid levels by the end of June following the easing of lockdown rules and the resumption of building works.
Chief executive Dave Jenkinson said: ‘Taking an early decision not to take advantage of the furlough scheme for any colleagues, we maintained good momentum in the business, continuing to serve our customers, making detailed preparations for a safe return to work and, when it was appropriate, restarting our build programmes efficiently.’
‘As part of our Never The Same Again programme to embed the positive changes in ways of working through the crisis, we are today announcing proposals to further streamline store operations and management structures.
‘These proposals are an important step in becoming a leaner, faster business set up to serve changing customer needs and we are committed to supporting colleagues through this time.’
It comes as 14,000 jobs could be on the brink at Debenhams.
Plans to liquidate the business are being drawn up in case other options for saving the company – such as selling it – fall through.
If the ailing department store chain collapses – and all 14,000 jobs are lost – it would be the single biggest cull of the coronavirus crisis.
This would bring the total number of potential UK job losses to more than 180,000 since the pandemic began – adding to misery hitting firms from Virgin Atlantic to NatWest, British Gas-owner Centrica and luxury car maker Aston Martin.
British Airways has so far announced the largest cull, signalling that it may have to cut as many as 12,000.
The likes of Laura Ashley, Cath Kidston and Oasis are among the other big-name brands that have collapsed this year.
How more than 187,000 jobs have now been lost or are at risk amid the coronavirus pandemic
M&S has become the latest employer to cut large numbers of jobs, saying it plans to cut around 7,000 over the next three months across stores.
It follows cuts announced by fellow retailer John Lewis, sushi chain Yo! and clothing store River Island last week.
And around 14,000 jobs could be on the brink at struggling department store Debenhams, with plans to liquidate the business being drawn up in case other options for saving the company – such as selling it – fall through.
Here are the major potential job losses announced since the coronavirus lockdown was imposed on March 23:
Total: 187,719
- August 18 – M&S – 700
- August 17: easyJet: 670
- August 17: Jet2: 102
- August 16: Debenhams: 14,000 at risk
- August 14 – John Lewis – 399 at risk
- August 14 – Yo! Sushi – 250
- August 14 – River Island – 350
- August 12 – NatWest – 550
- August 11 – InterContinental Hotels – 650 worldwide
- August 11 – Debenhams – 2,500
- August 7 – Evening Standard – 115
- August 6 – Travelex – 1,300
- August 6 – Wetherspoons – 110 to 130
- August 5 – M&Co – 380
- August 5 – Arsenal FC – 55
- August 5 – WH Smith – 1,500
- August 4 – Dixons Carphone – 800
- August 4 – Pizza Express – 1,100 at risk
- August 3 – Hays Travel – up to 878
- August 3 – DW Sports – 1,700 at risk
- July 31 – Byron – 651
- July 30 – Pendragon – 1,800
- July 29 – Waterstones – unknown number of head office roles
- July 28 – Selfridges – 450
- July 27 – Oak Furnitureland – 163 at risk
- July 23 – Dyson – 600 in UK, 300 overseas
- July 22 – Mears – fewer than 200
- July 20 – Marks & Spencer – 950 at risk
- July 17 – Azzurri Group (owns Zizzi and Ask Italian) – up to 1,200
- July 16 – Genting – 1,642 at risk
- July 16 – Burberry – 150 in UK, 350 overseas
- July 15 – Banks Mining – 250 at risk
- July 15 – Buzz Bingo – 573 at risk
- July 14 – Vertu – 345
- July 14 – DFS – up to 200 at risk
- July 9 – General Electric – 369
- July 9 – Eurostar – unknown number
- July 9 – Boots – 4,000
- July 9 – John Lewis – 1,300 at risk
- July 9 – Burger King – 1,600 at risk
- July 7 – Reach (owns Daily Mirror and Daily Express newspapers) – 550
- July 6 – Pret a Manger – 1,000 at risk
- July 2 – Casual Dining Group (owns Bella Italia and Cafe Rouge) – 1,909
- July 1 – SSP (owns Upper Crust) – 5,000 at risk
- July 1 – Arcadia (owns TopShop) – 500
- July 1 – Harrods – 700
- July 1 – Virgin Money – 300
- June 30 – Airbus – 1,700
- June 30 – TM Lewin – 600
- June 30 – Smiths Group – ‘some job losses’
- June 25 – Royal Mail – 2,000
- June 24 – Jet2 – 102
- June 24 – Swissport – 4,556
- June 24 – Crest Nicholson – 130
- June 23 – Shoe Zone – unknown number of jobs in head office
- June 19 – Aer Lingus – 500
- June 17 – HSBC – unknown number of jobs in UK, 35,000 worldwide
- June 15 – Jaguar Land Rover – 1,100
- June 15 – Travis Perkins – 2,500
- June 12 – Le Pain Quotidien – 200
- June 11 – Heathrow – at least 500
- June 11 – Bombardier – 600
- June 11 – Johnson Matthey – 2,500
- June 11 – Centrica – 5,000
- June 10 – Quiz – 93
- June 10 – The Restaurant Group (owns Frankie and Benny’s) – 3,000
- June 10 – Monsoon Accessorise – 545
- June 10 – Everest Windows – 188
- June 8 – BP – 10,000 worldwide
- June 8 – Mulberry – 375
- June 5 – Victoria’s Secret – 800 at risk
- June 5 – Bentley – 1,000
- June 4 – Aston Martin – 500
- June 4 – Lookers – 1,500
- May 29 – Belfast International Airport – 45
- May 28 – Debenhams (in second announcement) – ‘hundreds’ of jobs
- May 28 – EasyJet – 4,500 worldwide
- May 26 – McLaren – 1,200
- May 22 – Carluccio’s – 1,000
- May 21 – Clarks – 900
- May 20 – Rolls-Royce – 9,000
- May 20 – Bovis Homes – unknown number
- May 19 – Ovo Energy – 2,600
- May 19 – Antler – 164
- May 15 – JCB – 950 at risk
- May 13 – Tui – 8,000 worldwide
- May 12 – Carnival UK (owns P&O Cruises and Cunard) – 450
- May 11 – P&O Ferries – 1,100 worldwide
- May 5 – Virgin Atlantic – 3,150
- May 1 – Ryanair – 3,000 worldwide
- April 30 – Oasis Warehouse – 1,800
- April 29 – WPP – unknown number
- April 28 – British Airways – 12,000
- April 23 – Safran Seats – 400
- April 23 – Meggitt – 1,800 worldwide
- April 21 – Cath Kidston – 900
- April 17 – Debenhams – 422
- March 31 – Laura Ashley – 268
- March 30 – BrightHouse – 2,400 at risk
- March 27 – Chiquito – 1,500 at risk.
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