Marks & Spencer to cut 525 jobs in UK
The proposals have been developed by M&S following a detailed review of the organisation and an analysis of its processes and do not impact on M&S store employees.
The proposals are centred on plans to reshape and redefine the organisation by reducing the number of Head Office roles by a net reduction of c.525 roles and also reduce the number of roles permanently based in central London by c.400, across IT and Logistics, as part of the retailer’s strategy to work more simply and more efficiently.
The net reduction would be achieved through a combination of fewer contractors, natural attrition and redundancies for M&S employees.
Should the proposals go ahead they would deliver significant cost savings. It is expected that annualised operating cost savings would be c.1% of the UK cost base. Cost growth guidance for the current year remains unchanged at c.3.5%.
There would be a non-underlying cost of c.£15m which includes the changes to the senior management team that have already taken place.
Steve Rowe, M&S CEO, said: “M&S has to become a simpler and more effective organisation if we are to deliver our plans to recover and grow our business.
“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.” ■