Daily Management Review

Marks & Spencer to lay off 7,000 employees in three months


British retailer Marks & Spencer has announced that it will cut 7,000 jobs in the next three months due to a slowdown in sales amid the pandemic and cost-cutting programs.

EuroAsia Vizion via flickr
EuroAsia Vizion via flickr
The cuts will affect the company's central support center, administrative positions in regional divisions and store employees in the UK, about one-tenth of the state, according to BBC News. 

The company expects that most of the cuts will come from voluntary layoffs or early retirement. In the future, the retailer expects to create new jobs, including through the development of online commerce.

The press release says that because of the coronavirus, the chain's sales turned out to be worse than last year. In particular, over the past 13 weeks they fell by 38.5%, customer preferences have changed, but it is too early to say what the post-shaped sales structure will be. 

Working in a lockdown environment has shown the company that employees are able to work more flexibly and productively, performing multiple tasks at the same time and quickly switching between departments selling clothing, food and household goods.

source: ft.com