Tag: job losses

7000 jobs to go at M & S

Marks and Spencer announces 7000 job cuts over next three months:

We are today announcing important proposals to further streamline the business both at stores and management level.

As previously outlined Clothing & Home trading in the stores remains well below last year, with online and home delivery strong.  It is clear that there has been a material shift in trade and whilst it is too early to predict with precision where a new post Covid sales mix will settle, we must act now to reflect this change.

We have also learnt that we can work more flexibly and productively with more colleagues multi-tasking and transitioning between Food and Clothing & Home. The deployment of our leading store technology package developed in partnership with Microsoft has also enabled us to reduce layers of management and overheads in the support office.

As a result we are today embarking on a multi-level consultation programme which we anticipate will result in a reduction of c. 7,000 roles over the next 3 months. These will include departures in our central support centre, in regional management, and in our UK stores, reflecting the fact that the change has been felt throughout the business.

We expect a significant proportion will be through voluntary departures and early retirement. In line with our longstanding value of treating our people well, we will now begin an extensive programme of communication with colleagues.   

Concurrently we expect to create a number of new jobs as we invest in online fulfilment and the new ambient food warehouse and reshape our store portfolio over the course of the year. 

The cost of the programme including redundancies will be reflected in a significant adjusting item to be included in the group’s half-year results.  The streamlining programme is an important step in delivering on our cost savings programme and ensuring we emerge from the crisis with a lower cost base and a stronger more resilient business. 

Chief Executive Steve Rowe commented: “In May we outlined our plans to learn from the crisis, accelerate our transformation and deliver a stronger, more agile business in a world in which some customer habits were changed forever.

“Three months on and our Never the Same Again programme is progressing; albeit the outlook is uncertain and we remain cautious. As part of our Never The Same Again programme to embed the positive changes in ways of working through the crisis, we are today announcing proposals to further streamline store operations and management structures.

“These proposals are an important step in becoming a leaner, faster business set up to serve changing customer needs and we are committed to supporting colleagues through this time.”

Group revenue: constant currency

% change to LY19 weeks to 8 August 201
13 weeks to 8  August 201
8 weeks to 8 August 201
Clothing & Home -49.5-38.5-29.9
Food-1.12.52.5
International-31.9-24.6-19.9
Group-19.2-13.2-10.0
Clothing & Home.com32.042.239.2
 M&S.com38.946.940.7

Jobs slashed at Edinburgh Airport

A restructuring process at Edinburgh Airport due to the impact of the Covid-19 pandemic on the aviation industry will see around a third of its workforce leave the business. 

Following a lengthy and detailed consultation process with staff and unions, the airport has made the regrettable decision as it prepares for a prolonged recovery. 

The airport directly employs 750 people and the redundancy process will begin today, covering all areas including frontline staff, management and support functions. The restructuring includes compulsory and voluntary redundancies across the business.

The airport consulted with staff and unions and its proposals on terms of redundancy were supported by more than 90% of people who took part in the ballot.

Colleagues who will unfortunately be made redundant will begin to receive letters as of 1 August and will leave the business on 31 October 

Gordon Dewar, Chief Executive of Edinburgh Airport said: “This is a bitterly sad day for the airport and for those colleagues who are losing their jobs through no fault of their own but due to the impact of this dreadful pandemic. 

“We have worked with unions and staff over the past four months to protect as many jobs as possible, but unfortunately we have to confirm this regrettable news as the business prepares for whatever comes next.  

“Last year we welcomed a record 14.7 million people through our doors. This year we will be lucky to see a third of that and next year won’t be anywhere near where we have previously estimated so the business has to right size to be in a position to survive and recover when it can.” 

The airport has used the UK Government’s Job Retention Scheme over the past few months as it has carefully considered the best approach to its recovery. It has helped to retain jobs, but the upcoming closure of the scheme and uncertain recovery of aviation means jobs will still be lost. 

Gordon Dewar added: “The furlough scheme has undoubtedly helped us to retain jobs and we are grateful for the UK Government’s support, as well as that of the Scottish Government through things like rates relief.

“Despite this, we continued to burn around £3.5 million a month as passenger numbers dropped dramatically and airlines drastically scaled back operations. It will be a very long road to recovery, and we cannot successfully make that journey while we are set up as a 15 million passenger airport. 

“Aviation was one of the industries to be hit first and unfortunately will be one of the last to fully recover, so job losses have been unavoidable. The situation has been exacerbated by the introduction of an ill-thought out and unworkable blanket quarantine policy which has massively impacted on passenger numbers.  

“Aviation jobs rely on passengers and flights. That has been lost in this argument and despite us working with unions to make the case for directed support, we are still waiting to find out what will be done to preserve these jobs which are crucial to any industry and economic recovery. 

“Throughout the consultation we have striven to be fair, compassionate and seek an outcome that protects as many people as possible.  

“We bitterly regret this necessity and all of our talented colleagues departing the business leave with our very best wishes. They are an incredibly talented workforce who have served Edinburgh Airport fantastically well and we will do what we can to help them find other employment. We are sorry to see them go.” 

Lothians MSP Miles Briggs commented: “Edinburgh Airport have had no choice but to make these redundancies, because of the impact of Covid-19 on the aviation industry, and my thoughts are with employees who will be made redundant through no fault of their own.

“These job redundancies reinforce the importance of investing in the South East of Scotland to grow the economy and create more job opportunities.

“Employees who are being made redundant must be fully supported to find new roles and develop new skills for career changes until the aviation industry recovers.”