British retailer John Lewis (LON:BD32) has announced plans to cut almost 800 jobs, in an attempt to minimise costs and be more efficient.
John Lewis is currently in talks with 773 of its staff about redundancy. Staff affected will be those working in the John Lewis home estimation and fitting services, responsible for measuring up in customers’ homes and installing flooring, blinds and curtains.
Whilst most affected by the changes will be expected to leave, the retailer has said few may be offered alternative roles in the store. John Lewis plans to create 386 jobs in the new central administration hub and in cafe customer service roles.
These cuts are the changes implemented since Paula Nickolds became the department store’s managing director in January. News of the redundancies have also come just weeks after John Lewis’ sister company, Waitrose, revealed plans to close six stores putting almost 700 jobs at risk.
The changes come amid falling profits at the store. Operating profits fell 31 percent despite a rise in sales of 4.5 percent in the first half of 2016.
As well as risks to current jobs, staff bonuses will also be affected this year but it is not yet known how much by. Last year John Lewis and Waitrose staff received 10 percent of their salary as a bonus. The figure was 17 percent in 2013.
Dino Rocos, operations director at John Lewis, said: “Our partners are passionate about offering the very best customer service and these proposals will allow us to modernise our business as it adapts to the changing needs of our customers and the role that shops play in their lives.
“The proposed new structure will allow us to harness partners’ knowledge and skills, giving them more scope to be in the right place at the right time to deliver great service to our customers when and where it’s needed. We understand that for some this will mean a period of change, and we are working with affected partners over the consultation period to give opportunities for redeployment in new roles wherever possible.”