UK retailer Marks and Spencer confirmed today (20 October) that it has commenced consultations with staff regarding proposed layoffs.
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“We are consulting with our store design and development and property teams,” a spokesperson for the group told just-food. “This consultation is specifically linked to our drive to reduce capital expenditure.”
M&S is looking to cut expenditure in the wake of the economic downturn.
Earlier this month, the retailer posted a 6.1% fall in second quarter comparable sales, the group’s worst quarterly performance since 2005.
During this trading update, M&S indicated that it would reduce capital expenditure. The company said it is expecting operating costs to increase by between 4% and 5% compared to previous guidance of 7%. Capital expenditure will be about GBP700m (US$1.2bn) rather than the GBP800m-GBP900m it had previously forecast.
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By GlobalDataIn the next fiscal year, this figure will drop to GBP400m, M&S said.
While Marks and Spencer said that it is “too early to say” how many jobs are under threat, it is believed that up to 100 job losses could result from the consultation.
