One of the UK’s high end retailers, John Lewis has decided to axe nearly 800 jobs as a part of the company’s decision to cut cost and become more efficient. The decision comes just weeks after its sister company Waitrose supermarket announced its decision to close down six stores and cut 700 jobs. The job cuts in John Lewis would mostly affect in its customer restaurants and store administration departments.
According to industry experts the proposed job cuts comes as a part of the new reforms initiated by the new managing director of the company, Paula Nickolds, who took charge early this year. Restaurant chefs, curtain and carpet estimating and fitting staffs are among the 773 people whom the retailer is planning to cut down. John Lewis announced that the company plans to move these jobs out of the stores to its office in Manchester. The retailer is also planning to stock readymade dishes from independent suppliers rather than preparing them in-store. This would dearly affect the chefs.
However, John Lewis has announced that it would create new 386 jobs in its central office and majority of the positions would go to its employees affected by the redundancy. Most of the carpet estimators and fitters could get back their jobs, but it is not the case with the Chefs as most are expected to leave.
The job cuts proposed by John Lewis are now the biggest since 2009 when the company sacked 700 of its employees. Its current decision comes at a time when operating profits plummeted 31 percent even as sales escalated by 4.5 percent in the six months to the end of July. During the previous year staff bonus was 10 percent of the salary, which was the lowest for the company in 13 years.