The Covid-crisis accelerates the reorganisation plans at Marks & Spencer: the British retailer wants to make three years of progress in one year, at the cost of another 950 jobs.
Speed and flexibility
Marks & Spencer will work with fewer employees, both at the head office and in the stores, the BBC reports. 950 of the 78,000 jobs (1.2 % of the total workforce) would be at risk. M&S was already working on a restructuring program that included store closures and cost savings, but this is now being accelerated to become a stronger, leaner company. Under the slogan 'Never The Same Again', the British icon aims to make three years of progress in one year, with speed and flexibility as the key words.
Marks & Spencer has been hit hard by the pandemic: food stores did remain open, but fashion sales fell by as much as 84 % in May and the retailer fears that some consumer habits have now changed forever. The company was lagging behind in e-commerce and had been struggling for some time due to fierce competition from Primark in the high street and Asos online. CEO Steve Rowe expects the impact of the corona crisis will "endure for the coming year and beyond."
Marks & Spencer is not the only British retailer in trouble: colleagues such as Ted Baker, John Lewis, Boots, Debenhams, Harrods and Pret A Manger have also recently announced store closures and redundancies.