John Lewis Partnership proposes to cut approximately 1,000 jobs in its department stores and Waitrose shops.
The UK’s largest employee-owned company, the company refers to its employees as partners.
Yahoo Finance UK was informed by a spokesperson for the company that they had announced to their partners their intention to simplify management structures at John Lewis and Waitrose stores. This will allow them to reinvest in the most important things to customers.
The company is seeking to streamline its management structure in Waitrose and John Lewis, and hopes to reinvest into areas like frontline customer service or visual merchandising to increase consumer interest.
The proposals, if approved, would see about 1,000 jobs being eliminated from all 34 John Lewis and 331 Waitrose stores across the country.
John Lewis & Partners must be transparent. It must inform its employees as soon as possible which jobs are being saved, especially in light of the uncertainty caused by the pandemic,” Kevin Mountford, cofounder of Raisin UK savings provider, said to Yahoo Finance UK.
He said that retail shops must adapt to the online shift and not close down stores.
“This brand, which is 117 years old has seen high-street shopping change. It needs to keep up with the changes before it disappears.” While shopping trends are changing, John Lewis and Waitrose must plan better internally.
The company stated that it will help employees who want to remain in the business and find new jobs. It also aims to minimise compulsory redundancies by offering options like voluntary redundancy or voluntary severance.
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Outplacement support will be provided to employees who are made redundant and they can also access a retraining program. The fund contributes upto PS3,000 ($4,165), towards a recognized pension plan.