High Street retail chain Marks & Spencer has announced it plans to cut 525 roles from its head office structure as continues to ‘redefine’ the organisation.
Following a detailed review of the company, M&S said it will be ‘entering in to consultation’ with its employees that will see 400 jobs reduced at its central London base across its IT and Logistics departments.
The net reduction would be achieved through a combination of fewer contractors, natural attrition and redundancies for M&S employees.
Should the proposals go ahead they would deliver significant cost savings, expecting that annualised operating cost savings would be 1% of the UK cost base.
Cost growth guidance for the current year remains unchanged at 3.5%. There would be a non-underlying cost of £15m, which includes the changes to the senior management team that have already taken place.
Steve Rowe, M&S CEO, said: “It is never easy to propose changes that impact on our people, but I believe that the proposals outlined today are absolutely necessary and will help us build a different type of M&S – one that can take bolder, pacier decisions, be more profitable and ultimately better serve our customers.
“We remain committed to investing in store staffing and improving our customer experience and therefore our store colleagues are not affected by this proposal.”