Cost of living crisis: Clarks is cutting jobs

103 jobs at British shoe retailer Clarks are at risk of redundancy. The brand is on a stable financial footing, but in order to maintain the post-pandemic recovery, operating costs must be strictly controlled, a company spokesperson told FashionUnited.

In order to reduce costs and ensure the long-term development of the company, a total of 103 positions in the global team will be cut. The employees affected by the redundancies have already been informed of the job cuts.

The long-established company justified the wave of redundancies with the difficult economic headwinds and the current cost of living crisis, both of which are having a negative impact on Clarks' business results.

Declining sales amid economic headwinds

C&J Clark International, which is responsible for Clarks' activities in the UK, part of the wholesale business in Europe and the entire wholesale business in Asia, recorded a decline in sales and profits in 2022. This was due to disruptions in the supply chain, which weakened the increase in demand following the pandemic.

In the 12 months to 31 December 2022, the company generated sales of 502.8 million pounds sterling, a decrease of 2 percent compared to the previous year, according to the annual report presented at the end of September. The aforementioned cost of living crisis and high inflation in particular led to a slowdown in direct sales in the second half of 2022.

Clarks expects these challenges to continue well into 2024.