John Lewis Partnership’s (JLP) turnaround programme is continuing and the latest news is that the underperforming retailer is considering cutting up to 11,000 jobs over the next few years. It’s also downgrading its redundancy terms to make them less generous.
Although the corporation hasn’t made the job cutbacks official, there have been reports that sources have stated that “at least 10%” and possibly more of the company’s employees could be let go from all areas of the business, including the headquarters, supermarkets, and department stores. According to reports, the senior management has talked about eliminating up to 11,000 positions, according to a reliable source. There are now 76,000 workers in the company.
It is unlikely, however, that there would be a massive layoff all at once, as department chiefs are reportedly developing strategies to progressively cut positions over a five-year period. This will occur through a combination of layoffs and failing to replace departing employees.
In the event that someone is laid off in the future, their compensation will be less substantial than it was before.
It will offer one week’s pay for every year of service instead of two for anyone being made redundant from 1st February. It said that in order to “better support those with shorter service who are affected by redundancy,” it is increasing the minimum payout for individuals who do not qualify for the entire redundancy package from one week’s salary to four weeks. The statement claimed that the current conditions were more generous than those of the sector as a whole.
The company has suffered in recent years due to intense competition, rising freight costs, rising prices for goods, and the cost of living problem, which have all affected its middle-class department stores, online operations, and premium supermarkets.
It had been a pioneer in the field of online retail, but in addition to its quick expansion online and the significant portion of its sales generated online, it has also experienced store estate erosion, leading to the closure of several locations in recent years.
