THE WHAT? The John Lewis Partnership, which owns John Lewis and Waitrose, is considering eliminating up to 11,000 jobs across its 76,000-strong workforce over the next five years.
THE DETAILS This potential reduction, amounting to at least 10% of its employees, is part of an effort to manage costs and enhance operational efficiency. The job cuts are expected to occur through direct redundancies and by not filling existing vacancies. This plan follows a recent decision to halve the company’s redundancy compensation package, reducing it from two weeks of pay per year of service to one week, effective from February 1. This change in redundancy terms, aimed at making the policy more affordable and freeing up cash for the business, has led to discontent among employees.
THE WHY? The job cuts and changes in redundancy terms come in the wake of the company reporting a £230m full-year loss, and are seen as measures to facilitate the company’s transformation and financial sustainability amidst challenging retail conditions.