Marks & Spencer Group (LON:MKS) has plans for a new wave of job cuts, with more than 300 roles to go in stores around the country, the Guardian has reported. The news comes with the blue-chip retailer continuing with its transformation programme as it looks to reverse a decline in profits.
Marks & Spencer’s share price fell in the previous session, giving up 1.34 percent to close at 310.30p. The stock underperformed the broader UK market, with the benchmark FTSE 100 index ending the session 0.80 percent in the red at 7,600.45 points. The group’s shares have lost more than four percent of their value over the past year, as compared with about a three-percent rise in the Footsie.
M&S to axe more jobs
Consultation documents seen by the Guardian show that while sales activity across M&S’ stores had fallen by 7.5 percent over the past two years, management costs had risen.
“This has contributed to reducing store profitability, impacting on our ability to trade our existing stores and open future stores viably,” the documents read. In response, 351 redundancies have been proposed across a range of roles.
The news comes after the blue-chip retailer warned last week that its decision to close 100 stores would not necessarily mark the end of its restructuring efforts. The group meanwhile scrapped its trading update provided alongside the group’s shareholder meeting. The retailer’s next formal report is expected to be its interim results in November.
‘Tough but necessary’
“M&S is transforming and this is a tough but necessary decision to take to ensure our stores support the future of the business and provide the best service for our customers,” a spokeswoman for the blue-chip group said, as quoted by the newspaper.