Selfridges today announced to his employees that he plans to cut 450 jobs – around 14% of his total workforce – in the recent job market slaughter in the UK. The number of layoffs has exceeded 66,000 since the onset of the coronavirus crisis.
The famous department store, founded in 1908, said it was facing the "toughest year" in its recent history and had to make "fundamental changes" while sales declined during the closure.
The UK's main streets were hit by the crisis when millions of shoppers switched to online shopping. Experts predict that there will be 250,000 layoffs across the industry.
Last week, Dyson announced it would cut 600 jobs in the UK, mainly in retail and customer service, while Marks & Spencer announced it would cut 950 in the first wave of a cull that will hit thousands of workers.
Selfridges – pictured – has announced it will cut 450 jobs in its stores as the "toughest year" in its recent history is imminent
Anne Pitcher, managing director of Selfridges, said the main streets had changed before Covid-19 and the company was now forced to make "fundamental changes".
She promised employees who were on vacation that the fact that they were not working now would not affect whether their role would be affected. She promised the employees more information Wednesday.
In an email to the employees, Ms. Pitcher said: “As you would expect in such a critical time, we carefully examined every aspect of our business – our structures, our costs, our way of working – from top to bottom, leaving no behind Stone unturned to ensure that we are fit for the purpose and the future.
& # 39; This included reviewing all non-essential expenses and suspending projects and initiatives where appropriate.
“As a family company, the most difficult decisions are those that affect our employees. That's why it hurts me to share the news today of the most difficult decision we have ever had to make, that unfortunately we have to make 14% net reduction of our total workforce, around 450 roles. & # 39;
Stores can now greet customers in stores, but millions are still staying away. In the past month, visitor numbers have dropped 65 percent year over year, and sales have dropped 48 percent in the past three months.
However, there are signs of hope in the broader labor market. Last week, more than a million jobs were advertised, as experts pointed to a significant increase in jobs for IT professionals.
Selfridges has tried to adapt to the coronavirus crisis by introducing a one-way system through stores, along with temperature controls, free parking, and a separate entrance for NHS staff and caregivers.
In an interview in May, Ms. Pitcher said Covid had accelerated the shift to digital shopping and admitted that it would lead to store closings.
"In the short term, people won't want to visit public spaces or attend major events as often," she said. "It will be the most difficult year ahead of us that we have ever seen."
The silver lining reads: "It is the years after that will be the exciting times".
"This is about reinventing retail, not less," she added. "Business will be different forever."
Marks & Spencer fires 950 people in the first wave of a cull that will hit thousands of workers. A store in Manchester is pictured
Hundreds of job losses are expected at M&S as part of an ongoing restructuring plan that could ultimately result in the loss of thousands of jobs.
The strategy, described as “never again the same” in the chain's annual results in May, is expected to bring a complete overhaul of business in the coming months as it adapts to the long-term impact of the pandemic.
Sources close to the plans told Sky News that several thousand jobs are likely to be lost in the coming months as managing director Steve Rowe implements the company's restructuring program.
The leisure and hospitality sector has borne the brunt of job losses for corona viruses. London's Southbank Center announced last week that two thirds of its employees may need to be cut, and Canterbury Cathedral is asking workers to be dismissed voluntarily.
The Southbank, the largest art complex in Europe, warns that 400 of the 600 jobs in central Waterloo are at risk, despite the government granting £ 1.57 billion in financial support to the entire art sector.
Managing Director Elaine Bedell, director of the Hayward Gallery, Ralph Rugoff, and music director, Gillian Moore, said in a letter to the members that employees had been told that "very significant losses" were likely by the end of the fiscal year.
The Southbank Center includes a number of performing arts venues. The three main buildings are the Royal Festival Hall, the Queen Elizabeth Hall and the Hayward Gallery.
The organization, which has taken away most of its 600 employees, has predicted that it could have a deficit of £ 5.1m for fiscal 2020-21, the Guardian reported.
The 300 employees at Canterbury Cathedral had previously been told that they would have to cut jobs to deal with a "significant loss of income" as a result of the corona virus.
Unemployment rose by 34,000 to 1.3 million in April, while the total number of employees in British companies fell by 649,000 between March and June, according to data from the Office for National Statistics (ONS).
However, demand for web designers and developers rose 15.5 percent last month, as the Recruitment & Employment Confederation (REC) announced.
According to the industry group, large and small UK companies recognize that digital skills are critical to all business areas – for example, selling online through websites, improving marketing efforts and increasing productivity.
Deputy General Manager Anthony Walker told the BBC: “We saw two years of digital transformation within two weeks.
"Many of the executives we spoke to and survey data show that digital will be more important to their business due to the coronavirus pandemic."
In the UK, at least 66,102 jobs are at risk from the ongoing coronavirus crisis
The table below shows how many jobs in UK companies are at risk
- Dyson – 600
- Southbank Center – 400
- DFS furniture – 200
- Bentley – 1,000
- Burberry – 150 at risk
- Casual Dining Group (Bella Italia, Cafe Rouge and Las Iguanas) – 1,900
- DHL at Jaguar Land Rover – 2,200
- Go outdoors – 2,400
- The guardian – 180 in danger
- BBC – 520
- Harrods – 700
- Oasis Warehouse – 1,800
- Ryanair – 3,000
- Skyscanner – 300 (84 in Edinburgh)
- SSP group (Upper Crust, Caffe Ritazza) – 5,000
- Victoria's Secret – 800 Endangered
- M&S – 950
- Selfridges – 450
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