United Kingdom (Commonwealth Union)_John Lewis has confirmed to ITV News that it will be looking to reduce the size of its workforce as part of a wider plan to “return to profit” over the next five years.
It follows a Guardian report, published on Saturday, that said the John Lewis Partnership (JLP) was looking to slash up to 11,000 jobs being 10% of its workforce, across the group’s head office, supermarkets and department stores. The Guardian reported that John Lewis Partnership, the owner of John Lewis and Waitrose, is considering cutting up to 11,000 staff jobs over the next five years.
A minimum of 10% of the staff-owned business’s workforce could be affected across the group’s head office, supermarkets and department stores, the report said, citing sources, and that the number of roles are anticipated to be gradually reduced over the years without replacement.
The report said in response to a Reuters request for comment : “The John Lewis Partnership has a plan to return to profit, which involves investing heavily to enhance our customer offer, stores, technology, and becoming more efficient.
It added that this was working and performance was improving, but as already announced, that sadly meant reducing the number of Partners they need in the business.
“It would be inappropriate to discuss details and our Partners will be the first to know about any changes.”
The Guardian detailed that rising pay and other costs and poor sales are some of the reasons behind the decision, as the company battles to bounce back from a £230m full-year loss.
Employees voiced their frustration at the news in a series of messages seen by ITV News from the John Lewis intranet.
“How does the way this decision has been announced and timed, with the opportunity for no debate at all, sit with our Democratic Vitality principles of sharing Knowledge, Power and Partner Opinion?” one person wrote.
Another said: “After reading this announcement I am angry and dismayed that our ‘Leadership Team’ think that the way this decision has been reached and communicated is acceptable, especially as we are about to go through a period of change with what a lot of Partners are now assuming will involve numerous redundancies… When are we going to start being honest and admit that we are a Partnership in name only.”
The company has cut thousands of jobs since its turnaround plan was launched almost four years ago, through the closure of high street stores as well as head office redundancies.
On Thursday, it was announced that the 159-year-old group is to halve its redundancy pay package for workers as part of its major overhaul, as the troubled retail giant continues to slash costs.
The move has ratcheted up concerns that more job cuts could be imminent at the retail group, that runs the department store chain and Waitrose grocery business.
On Thursday morning workers were informed that the group will water down part of its partnership redundancy pay plan.
It said that the group’s redundancy pay package, which provides workers two weeks of redundancy pay for every year at the business, will be reduced by half to provide one week of pay per year as a partner.
This is in addition to statutory redundancy pay.
JLP said the move will provide it with more funds to put towards supporting its budgets and could also be put towards its next pay review.
After its customers cut back on spending prompting its annual loss to balloon, the British retailer warned last March it would have to cut staff numbers and scrap any bonus last year.
The company has been struggling in recent years amid tough competition and the costs of developing its online offering.
John Lewis chair Sharon White, who will step down in 2025, also said in September last year that its turnaround will take two years longer than planned and cost more money due to inflationary pressures.
