1 , 450 jobs axed on High Street

M&S cuts 950 and ‘more follow’

MARKS & Spencer is set to axe nearly 1,000 jobs – with a second wave of cuts likely to follow.

The chain’s initial clear-out will target managers and others linked to running its stores.

But it is understood the 136-yearold retailer, battling flagging clothing sales, is drawing up plans to slash jobs in most parts of the business.

And fashion brand Ted Baker has said it is cutting at least 500 jobs, more than a quarter of its UK workforce.

M&S chairman Archie Norman announced plans in May to “radically” speed up an overhaul of the business.

The firm said yesterday’s 950 job losses would hopefully be achieved through voluntary redundancies.

Those set to go include some of the 27,000 staff whose wages have been paid through the Coronavirus Job Retention Scheme. Unlike many other firms, M&S has yet to say if it will reject the £1,000 bonus for each furloughed worker it keeps.

The payout to the firm would run to several millions of pounds.

Sacha Berendji, director of retail, operations and property, said: “Our proposals reflect an important next step in our Never the Same Again programme to become a stronger, leaner and more resilient business.

Through the crisis we’ve seen how we can work faster and more flexibly by empowering store teams. It’s essential we embed that way of working.”

M&S warned the “aftershocks” of Covid-19 would “endure for the next year and beyond”. Boss Steve Rowe added: “Some habits will return to normal, others have changed forever.”

M&S is halfway through closing or relocating up to 120 stores, many of them long-established town centre branches. Losing such a “destination” store would be a hammer blow to many struggling high streets.

The chain’s annual profit to the end of March, including just one week of lockdown, was down a fifth to £403million. After revaluing stock and stores due to the pandemic,

that was cut to £67.2million.

Yesterday’s announcement comes amid jobs carnage by retailers.

On just one day this month Boots unveiled 4,000 job losses, John Lewis confirmed 1,300 were at risk and Burger King said 1,600 may go.

They are among more than 24,000 high street jobs lost already this year.

Since the March lockdown, more than 150,000 roles have either been axed or put at risk by big business.

Prof John Colley, of Warwick Business School, said: “M&S will undoubtedly make much deeper cuts.

“More stores will be set to close and staffing will be reviewed.”

“Covid also provides an opportunity for decisions which would have been unpalatable some months ago.”

Downing Street said it was “ready to support” M&S staff, adding: “Our top priority has been to support people, protect jobs and help businesses.”