MARKS & SPENCER is to cut more than 500 head office jobs and move hundreds of IT and logistics staff out of London in a bid to cut costs, as the retailer continues to post falling sales.
The job cuts and relocations would be made by “a combination of fewer contractors, natural attrition and redundancies”, the retailer said in a statement.
M&S will enter into consultation with staff but if the proposals go ahead the retailer would cut around 1%, or £30 million, from its UK costs. Despite the planned cuts, M&S said current year costs of 3.5% would remain unchanged.
Steve Rowe, M&S CEO, said: “M&S has to become a simpler and more effective organisation if we are to deliver our plans to recover and grow our business.
Rowe said that the proposed cuts were “absolutely necessary” and would allow him to 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 shares fell 1% following the announcement.