John Lewis Trims Redundancy Payouts Amid Ongoing Cost-Cutting Efforts
The John Lewis Partnership (JLP) is set to reduce its redundancy pay package for workers as part of its ongoing cost-cutting initiatives.
The retail giant, encompassing the department store chain and Waitrose grocery business, aims to halve the existing redundancy pay, offering one week of pay per year as a partner instead of the previous two weeks.
The move has raised concerns about potential future job cuts within the organization. In addition to helping the company manage costs, the revised plan may contribute to supporting budgets and upcoming pay reviews.
The changes also include setting a new minimum redundancy payment of four weeks of salary, up from the current one-week minimum. JLP emphasized that the adjustments are necessary for the company’s transformation and will allow increased investment in its active workforce.
The employee-owned business has been implementing a significant turnaround plan for nearly four years, resulting in the closure of high street stores and head office redundancies.
Despite facing financial losses, JLP remains committed to its transformation efforts, with Chairwoman Dame Sharon White acknowledging the extended timeline for the five-year plan launched in 2020.
The latest move reflects the company’s ongoing commitment to balancing its benefits package while navigating the evolving retail landscape.
Source: The Industry.Fashion