One of the most prominent British multinational retailers, Marks & Spencer, announced that it plans to cut 7,000 jobs to cope with the pandemic’s effects.
M&S will cut the 7,000 jobs from its total of 78,000 in the next three months. The cuts will take effect in its UK stores, regional management, and support functions. The company expects that a significant part of reductions to be through early retirement and voluntary departures. However, the company is to create some jobs as it will invest in its online business. Until now, 41% of its overall sales came from online shopping.
In the past 13 weeks, clothing and home sales lost 38.3%, while food sales rose 10.6%. Since stores re-opened, clothing and home sales managed to recover some ground, but they still are 29.9% lower than last year’s figures. According to M&S, sales in out-of-town stores are close to last year’s levels.
But at a country level, M&S is not the only one to slash jobs. British Airways will cut 12,000 jobs, while Rolls-Royce is to eliminate 9,000.
Currently, Marks & Spencer stocks are trading 0.37% lower. Since the beginning of the year, M&S shares lost 47%, while UK100 reported a 19% drop.
The fashion industry took a hit from the pandemic! Read all about it on CAPEX.com!
Sources: theguardian.com, marketwatch.com
