Redundancy plans will begin in the coming days as M&S becomes the latest retail giant to scale back its workforce. In the initial phase, the first cuts will begin after COVID-19 pandemic causes a temporary closure oof its shops in March. The brand will now joing Boots, John Lewis and Debenhams in succoming to the retail purge which has occurred due to the coronavirus pandemic.
According to Sky News, the initial batch of cuts could soon rise into the thousands.
Of the 78,000 employees, 27,000 were placed onto the furlough scheme.
However, with employers now required to begin pay national insurance and pensions to staff, M&S becomes the latest to use the scheme before then announcing cutbacks.
Employers will be asked to pay the full amount of the scheme by the end of October.
These cuts represent part of the companies, ‘Never the same again’ plan formulated two months ago.
It is unclearwhether the company will accept the Treasury’s £1,000 bonus for every workers who returns to work and is kept on until next year.
Chief executive Steve Rowe said in May: “Whilst some customer habits will return to normal others have changed forever, the trend towards digital has been accelerated, and changes to the shape of the high street brought forward.
“Most importantly working habits have been transformed and we have discovered we can work in a faster, leaner, more effective way.