(qlmbusinessnews.com Fri 15th, 2024) London, UK —
John Lewis Signals Further Job Losses Amid Return to Profitability.
“Profitable Yet Prudent: John Lewis Considers Job Cuts Despite Positive Financial Outlook”
John Lewis, the iconic British retailer renowned for its partnership model and Waitrose supermarket chain, has hinted at the possibility of further job cuts despite a return to profitability.
The retail giant revealed pre-tax profits of £56 million, marking a significant turnaround from the £234 million loss recorded the previous year. However, for the second consecutive year, John Lewis will not be issuing staff bonuses.
In 2023, the company shed “a few hundred” roles as part of cost-saving measures amounting to £88 million, with similar cuts anticipated this year. Nish Kankiwala, John Lewis's new chief executive, emphasized the exploration of operational improvements, suggesting that any potential reduction in roles would prioritize attrition over redundancies.
Dame Sharon White, Chair of John Lewis, acknowledged the inevitability of job losses in the partnership's future but clarified that there is no set target for job reductions. Plans to streamline the workforce were announced in January, aiming to enhance profitability over the next five years.
The absence of staff bonuses, only the third occurrence since 1953, reflects the retailer's focus on enhancing overall pay. Approximately 45,000 employees are slated to receive a 10% pay rise in April.
Despite challenges, John Lewis saw a surge in customer numbers, with sales totaling £12.4 billion, a marginal increase from the previous year. While Waitrose witnessed a 5% rise in sales to £7.7 billion, John Lewis stores experienced a 4% decline in sales to £4.8 billion.
The company plans to revamp 80 Waitrose supermarkets and open new branches to drive profit growth. Dame Sharon dismissed suggestions of separating John Lewis and Waitrose, emphasizing the synergy between the brands.
The positive results come amidst a period of transition, with Dame Sharon White announcing her departure in 2025 after the shortest tenure as Chair in John Lewis's history. Earlier speculation about selling a minority stake in the business was quashed, although external investment remains a potential consideration for the future.
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