John Lewis points to job cuts as it lowers redundancy pay for staff
John Lewis Partnership could be on track to make further job cuts after it slashed redundancy payout for its staff.
Workers were reportedly told this week the redundancy pay would be lowered to one week’s pay per year on service, as its current two week policy was higher than what is typically offered.
In a memo, initially seen by The Telegraph, the struggling high street favourite, which is part-owned by its staff, said its high cost redundancy pay prevented the firm “from moving as quickly” as it wanted to and restricted “ability to invest more in pay.”
John Lewis said it needed to make the policy more affordable to help free up extra cash.
The outlet said the development reignited speculation internally that there could be further job cuts.
In March last year, John Lewis warned it would have to cut staff numbers and scrap any bonus after its customers cut back on spending.
A John Lewis spokesperson told City A.M: “We offer a generous and attractive range of benefits that includes a redundancy package, which will continue to be above the market.
“We’re making changes as a high proportion of our current benefits package is weighted towards Partners after they have left, when we want to better reward those currently working for us. These changes will allow us to invest more in our Partners still within the business.”
The reports come amid a period of losses for the John Lewis Partnership, which also owns supermarket Waitrose.
Frontwoman for the struggling brand, Sharon White will exit the role next February, leaving behind her a troubled balance sheet.
White, the former boss of Ofcom, enacted a turnaround strategy during the pandemic to grow the business profits to £400m in five years but this is now expected to be completed in 2027/28.