Marks and Spencer Group PLC to announce job cuts as pandemic dents demand

() is expected to announce job cuts this week as the retailer become that latest firm to trim its workforce as the fallout from the coronavirus pandemic batters the high street.

According to a Sky News report, the retailer will unveil its redundancy plans within days and that several thousand jobs are expected to face the axe as a restructuring plan is accelerated.

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The report may worry the 27,000 workers that M&S placed on furlough when most of its stores were forced to close under the UK’s lockdown measures in March.

Many of these have returned to work, however, it remains to be seen how many of the jobs will be part of the redundancy plans, as well as whether M&S will take up the £1,000 government bonus for each employee brought back from furlough which was announced by Chancellor of the Exchequer Rishi Sunak earlier this month.

Cuts across the board

M&S’s plans are the latest in a number of firms across the UK economy that have announced mass job cuts in a bid to save cash and keep themselves afloat as the pandemic hits consumer demand hard.

Over the weekend, fashion chain () unveiled plans to cut at least 500 jobs, over 25% of its workforce in the UK, to bolster itself against the fallout from the pandemic, which saw its revenues between January 26 and May 2 slump around 36% after the lockdown forced the closure of its stores.

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The new cuts also add to the 160 jobs that are already set to be axed as part of a restructuring of the company.

Other companies to have brought out the scissors include department store chain John Lewis, pharma chain Boots, Rolls Royce Holdings PLC (), () and British Gas owner ().

Shares in M&S were 1.9% lower at 97p in lunchtime trading on Monday, while Ted Baker slumped 8.2% to 69.8p.