Mass Unemployment Is What Happens When Marks and Spencer Confirms Plans

UK-based retail giant, Marks and Spencer, announced its attempt to save up to £30 million but with a big blow to the employment rate. The company officially confirms that it will lay off 525 head office jobs as consequence to this cost cutting plan. However, shop floor workers are safe from the pending job loss. The UK business industry is continuously suffering since the Brexit and Marks and Spencer is just one of the many retail behemoths that experience the blow.

Marks and Spencer chief executive, Steve Rowe, is optimistic about the pending changes for the retail company. According to the M&S exec, the organization is expected to become much simpler and more effective upon implementation of the plans. These plans are likewise designed for the recovery and growth of the business.

Proposing change is never an easy task for businesses, especially those that impact the lives of their employees. However, hard as it may seem, the outlined proposals for job cuts is an absolute necessity. It is also a step for building a different Marks and Spencer. Changes in the company allow faster and bolder decision making which is more profitable for business growth. Most importantly, it is designed to ultimately serve their growing clientele better than ever.

 

 

What’s next for Marks and Spencer?

The retail giant remains committed to improving their customer service and providing employment through store staffing. The proposed job cut does not affect store floor level colleagues.

 

Marks and Spencer

Job losses are the result of the objective of the retailer company to revive its finances after a plethora of disappointing sales results in the previous years. Despite strong food revenues, Marks and Spencer suffered from the declining sales in home ware and clothing.

 

Who is affected by the job cuts?

As the top M&S executive wields the axe, those in the IT and logistics departments will receive the severe hit. According to Rowe, the layoff will have positive impact for the retail company, making it more efficient and simple in the long haul.

 

Affected by the job

A turnaround plan is expected to go full swing in November. The extreme competition from online businesses in the retail market also results to pending sales of stores. It is however a good news or shop floor staffs as there will be an £8.50 wage increase for employees in this level.

However, there are still criticisms regarding the increase particularly from Labor MP Siobhain McDonagh. The new deal basically reduces the overtime and Sunday working rates, the incentives that many employees rely on in the previous years. He reiterated that this is contrary to what executives are saying a good offer. In fact, it is a form of betrayal especially for loyal staffs with over 2 or 3 decades of service to M&S.

 

Read more