STRUGGLING M&S TO CUT 525 HEAD OFFICE JOBS IN £30MILLION COST SAVING EXERCISE
Marks and Spencer is planning to cut about 525 head office jobs as part of an estimated £30m in cost savings. New M&S boss Steve Rowe is making the cuts amid pressure to improve results at the struggling retailer.
Mr Rowe, who took over in April, said the job losses were “necessary” to build a different type of M&S.
Many of the affected roles will be across its three London offices. It also plans to move 400 jobs in IT and logistics outside the capital.
Of the 525 job losses, about 260 will be permanent roles and the rest contractors, the company said.
Mr Rowe said: “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.”
M&S employs over 71,000 people in the UK, of which 3,500 are currently in its seven UK head offices. Separately, the retailer announced on Friday that workers would receive a 14.7% pay rise after staff protested against plans by Mr Rowe to change the company’s pay and pension scheme.
The retailer said shop floor staff would receive £8.50 an hour, and £9.65 in London, from next April.