John Lewis Set To Axe Some Stores, Jobs And Bonuses In Cost-Cutting Drive
John Lewis is set to axe some of its stores and jobs as part of a new cost-cutting drive, according to a letter issued to the company's 80,000 staff.
In the letter, which was seen by the Evening Standard, John Lewis' new chairman Sharon White said: "The difficult reality is that we have too much store space for the way people want to shop now. As difficult as it is, we now know that it is highly unlikely that we will reopen all our John Lewis stores. Regrettably, it is likely that there will implications for some Partners' jobs. We are in active discussions with landlords about ending some leases and renegotiating others to make the terms more flexible."
White also said the renowned staff bonus is likely to be ditched next year, adding: "We entered the crisis with weakening profits, and we have taken a number of actions to preserve cash. Support from the Government has been a big help - they have paid most of our furlough costs and given us a holiday from business rates.
"Trade too has not been as bad as our worst-case scenario thanks to a lot of hard work from our Partners.
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"However as our competitors reopen we expect trading to be tougher in the second half of the year. There is clearly a lot of uncertainty but as things stand, it is hard to see the circumstances where we will be able to pay a bonus next year. I know this will be a blow for partners who have made sacrifices these past months."
The company added that although no final decision on the proposed cuts has been made, more details will be shared with workers later this month.
A John Lewis spokesperson told LADbible: "The reality is that we have too much store space for the way people want to shop now and we have shared this with our Partners.
"As difficult as it is, it is highly unlikely we will reopen all our John Lewis stores. However no decision has been made and any details would be shared with Partners first by the middle of July. "
Featured Image Credit: PA
Topics: UK News