John Lewis to cut 75 management jobs in major reorganisation

Company will merge management teams behind its department stores and Waitrose supermarkets from February

(EPA-EFE)

John Lewis has announced that it will merge its two business units under a single management team, resulting in around 75 job losses and a cost saving of approximately £100m.

From February, the company will integrate the teams behind its department stores and Waitrose supermarkets, with a third of the current 225 senior management head office roles disappearing.

Chairman of the John Lewis Partnership, Sir Charlie Mayfield, said: “Although there will be little or no disruption to our shops or websites in the near term, there will be considerable change in many other areas of the partnership as we bring the two businesses much closer together.”

He added: “When the programme is complete, the partnership will be better positioned to break out from the cycle of declining returns that are affecting most established retailers.”

Earlier this month, John Lewis reported a £25.9m loss in the first half of its current financial year, as costs surged and sales at its department stores fell. Sir Charlie noted that Brexit continued to weigh on consumer sentiment and that a no-deal departure would have a “significant” effect on the company’s profits.

Last year was also difficult for the company and even Waitrose, which has fared better than its sister unit, has closed or sold 17 stores since 2018.

“The lesson of the last two years is that we need more innovation, faster decision making and bolder steps to align our operating model with our strategy,” Sir Charlie said on Tuesday.

The reorganisation has already led to the departure of a senior executive. Rob Collins has decided to step down as managing director of Waitrose and will leave in January.

Mr Collins, who joined the John Lewis Partnership in 1993, said he is confident the new structure is the right one for the future but that there isn’t a role in the new structure that is right for him personally.