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M&S to cut 351 store management roles

By Prachi Singh

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Business

British retailer Marks & Spencer Plc (M&S) would be cutting 351 jobs across its stores in the country, reports the Guardian. The retailer has decided to lay off 115 positions across store, commercial and operations segments and 182 section managers in the same sectors of the business.

According to consultation documents accessed by the Guardian, the troubled retailer is exploring job cuts in a bid to streamline its business and save cost. The report added quoting the documents, “while sales continued to witness a downturn across its store estate, with sales over the past two years declining by 7.5 percent, management costs rose significantly. This has contributed to reducing store profitability, impacting on our ability to trade our existing stores and open future stores viably.”

In June, M&S decided not to pay bonuses to its directors on the back of fall in profit. The company said in its annual report that group PBT was below the threshold for bonus payments in the business to begin. As such, the committee exercised its discretion and no bonus payments were made to directors. Group profit before adjusting items was 580.9 million pounds (779 million dollars), last year. In January, the company had announced that as a part of its transformation plan, it intends to reposition 25 percent of clothing & home space through a combination of closures, downsizes, relocations and conversions to food-only stores.

Picture:M&S media centre

M&S