Despite 2024 only just starting, a host of retailers have wasted no time cutting jobs as part of various cost-saving measures.
Last year, data from the Centre for Retail Research revealed that more than 120,000 jobs were lost in the retail sector as thousands of shops shuttered across the nation in retail’s worst year for store closures since 2008.
Retail Gazette rounds up the retailers who have begun axing roles this year.
The Body Shop
Following its fall into administration last month, almost 500 of The Body Shop’s work force have been made redundant as the ethical beauty retailer shutters almost half of its stores across the UK and axes 40% of head office jobs.
The business has already immediately closed seven stores, including London’s Oxford Street and Canary Wharf stores.
Administrators at FRP said the reduced store footprint would coincide with “a renewed focus on the brand’s products, online sales channels and wholesale strategies, bringing the brand in line with industry peers and supporting a return to financial stability”.
The head office restructuring follows not just the store closure plans but the sale of The Body Shop’s loss-making businesses in much of mainland Europe and parts of Asia back in January.
Sainsbury’s
Last month Sainsbury’s revealed plans to cut 1,500 roles as it looks to save £1bn over the next three years.
The supermarket said that it would cut roles in its contact centre in Widnes, in Cheshire, at its in-store bakeries and a few at local fulfilment centres.
Its plans, which are still subject to consultation, are part of its ‘save and invest to win’ programme, where any savings created are invested back into the business.
The changes include simplifying the store support centre structure, creating more efficient contact centre operations, consolidating its general merchandise fulfilment network and improving its bakery offer and availability in some stores.
Chief executive Simon Roberts said: “As we move into the next phase of our strategy, we are making some difficult, but necessary decisions.”
John Lewis
At the start of the year John Lewis said it would be cutting up to 11,000 jobs as part of its turnaround plan.
The retail giant is looking to slash more than 10% of its 76,000 workforce over the next five years as it plans to reduce its cost base by £900m.
Sources expect the cuts to impact the company’s central London head office and John Lewis staff most heavily and emerges after partners were recently told that redundancy pay would be halved.
Despite the looming cuts, this month the partnership revealed it will be boosting staff pay by 10% as part of a £116m investment.
The business, which also owns Waitrose, is expected to confirm the record pay increase when it posts its full-year results later this month.
Nike
Nike said it would be slashing nearly 2% of its total workforce last month in a bid to reduce costs after the sporting giant reported “softer” sales in the second half of the year.
The retailer axed 1,600 roles and is part of its wider plan of achieving £1.6bn in cost savings over the next three years.
Chief executive John Donahoe told employees in an internal email, ”We are not currently performing at our best, and I ultimately hold myself and my leadership team accountable.”
The email noted that business would redirect the resources towards investing in its most important categories and growth opportunities, such as running, women’s and its Jordan brand.
Subscribe to Retail Gazette for free
Sign up here to get the latest news straight into your inbox each morning
eBay
Back in January eBay became the latest tech firm to announce mass layoffs as it said it was cutting 1,000 jobs, equating to 9% of its full-time global workforce.
This decision was outlined in a memo to employees by eBay chief executive Jamie Iannone, as the business looks to “better position” for long-term growth.
Iannone said at the time: “While we are making progress against our strategy, our overall headcount and expenses have outpaced the growth of our business.
This is the second round of layoffs at eBay within a year, which revealed it had cut 500 employees – representing 4% of its total workforce – last February.
Boohoo
Boohoo placed 400 jobs at risk earlier this year after revealing plans to close its Daventry warehouse as it looks to streamline its distribution network.
The fast fashion giant opened the Northamptonshire distribution centre in 2021 following the acquisition of Debenhams and Arcadia Group brands Burton, Dorothy Perkins and Wallis.
The site is in the same location as the former Arcadia warehouse and saw 330 of the collapsed fashion group’s employees transferring to Boohoo as part of the deal.
The fashion retailer launched a consultation late last year and is organising a careers fair for the some 400 employees affected before the warehouse closes.
THG
January also saw THG reveal plans to axe 160 jobs across its marketing, sales and warehouse teams.
The group has kicked off a consultation to cut jobs at its tech arm Ingenuity, which will run until the middle of March.
A spokesperson for THG Ingenuity said the retailer is committed to “reviewing operational efficiency across the business, in line with its strategic pivot towards larger Enterprise clients.
An internal email to workers, initially reported by the Warrington Guardian, read: “Subject to consultation, The Hut Group is proposing to reduce the number of employees employed in the Omega site.
“688 employees will be placed at risk, with our current proposal being that circa 100 employees be made redundant.”
Frasers Group
As well as announcing the departure of its marketing boss Beckie Stanion, Frasers Group revealed 20 jobs have been placed at risk as the company restructures its marketing team.
The retail empire has launched a consultation period for the employees impacted by its move to “improve operational efficiency and delivery across all areas of marketing functions”.
The group’s marketing team, based at its London office, is understood to employ about 80 people in total.
The company added that it will look to “avoid and mitigate any consequences of redundancies, including looking at other alternative roles across the company and group”.
Click here to sign up to Retail Gazette‘s free daily email newsletter
