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M&S to shed over 1,000 jobs

(Agencies)
Updated: 2009-01-07 14:30

LONDON -- Marks & Spencer is set to axe more than 1,000 jobs, reports said, bringing further gloom to the high street as it struggles under the weight of the downturn.

Shoppers pass British retailer Marks and Spencer's flagship Marble Arch store in central London, January 6, 2009. [Agencies]

Unions voiced shock at the job cuts expected to be confirmed Wednesday by the clothing-to-food retailer, seen as a barometer of consumer sentiment.

"We want to know the business case for this decision and are seeking to meet with the company to have urgent meaningful consultation," said John Gorle of the Usdaw union.

"We hope other retailers will not panic and announce major redundancies as their staff are their greatest asset and Usdaw will always encourage companies to take a long-term view," he said.

The Times said M&S would announce plans to cut nearly 1,000 shop floor jobs and several hundred more posts in head office and support sectors on Wednesday.

The BBC also said the retailer was due to confirm the 1,000 job cuts. While representing less than two percent of its 70,000-strong workforce, the losses would have a symbolic value because of the profile of the company.

Shoppers flocked to heavily-discounted stores over Christmas and the new year, but analysts warned the last-minute spending spree would not be enough to make up the shortfall left by consumers tightening their belts.

Marks & Spencer announced in early November that net profit sank 43 percent in the first half of the year as it faced tough trading, and The Times said year-on-year sales over Christmas fell significantly.

The retailer refused to comment on the media reports.