LONDON (dpa-AFX) - Marks & Spencer Group Plc (MAKSY.PK, MAKSF.PK, MKS.L) announced Monday proposals to make significant changes to its UK Head Office structure, including reduction of hundreds of jobs. The move is part of the retailer's strategy to work more simply and more efficiently.
The proposals are centred on plans to reshape and redefine the organisation by reducing the number of Head Office roles by a net reduction of about 525 roles. The company would cut the number of roles permanently based in central London by about 400, across IT and Logistics.
The net reduction would be achieved through a combination of fewer contractors, natural attrition and redundancies for M&S employees.
The company said it will be entering in to consultation with its employees with regards to these proposals. These have been developed by M&S following a detailed review of the organisation and an analysis of its processes. The company said these proposals do not impact on M&S store employees.
The proposals would deliver significant cost savings, the company noted. It is expected that annualised operating cost savings would be about 1% of the UK cost base.
Cost growth guidance for the current year remains unchanged at c.3.5%.
M&S said it will be entering in to collective consultation with its employees with regards to these proposals through its network of independently elected employee representatives, the National Business Involvement Group, which will give careful consideration to any alternative proposals.
Copyright RTT News/dpa-AFX