British retailer Marks & Spencer Group plc will cut around 7,000 jobs over the next three months as part of cost-cutting measures to combat economic hardships resulting from the coronavirus pandemic, it says.
The job cuts are another blow to the UK's already struggling economy as unemployment rates continue to rise.
The company, which sells clothes, food and household goods, said it needed to reduce its workforce by around 10 percent to ensure its stayed in business. Most of the jobs to go are in regional management, support and UK store staff. The company employs 78,000 people.
Marks & Spencer, founded in 1884, has more than 1,460 stores in 62 countries. The massive shift in the market caused by the pandemic is the main reason for the decision, the company said in a statement. Action must be taken to reflect rapid changes and ensure the company's survival, it said.
Marks & Spencer will employ new technologies that will reduce its need for some managerial positions and supporting roles. The company said it will offer some employees a voluntary exit or early retirement to ease their financial burdens.
Many UK retailers have imposed cost-cutting during the retail slump, particularly in the clothing segment. As more retailers shift to mostly e-commerce, companies with many bricks-and-mortar stores are scrambling to reduce their exposure during the extended health crisis.
In July Walgreens' pharmacy chain Boots, TM Lewin and Selfridges announced job cuts to reduce overheads. Walgreens is laying off 5,800 employees while Selfridges will cut 450 jobs.
The job cuts have put strain on Britain's already struggling economy. The UK has, so far, shed more than 730,000 jobs as a result of the pandemic.
