River Island will axe 350 retail staff a month after slashing 250 head office roles in latest jobs misery for Britain
- The high street firm said jobs would go in the major store management shake-up
- Bosses and senior sales roles will be lost in restructure of its retail team
- Move comes after 250 head office staff went as part of cost-cutting measures
River Island has announced it will slash 350 jobs in a major store management shake-up – and another devastating blow for the high street.
The high street fashion retailer told staff it intends to slash store management and senior sales roles as part of a restructure of its retail team.
The move comes just a month after it had already said it would cut 250 head office staff as part of cost-cutting measures.
River Island store on London’s famous Oxford street, Central London, could be affected
River Island has seen revenues and profitability hit by a slump in store footfall after reopening sites following the coronavirus lockdown.
Chief executive Will Kernan told staff in an internal memo that the changes will create a “flatter management structure with a greater emphasis on customer service”.
He said: “We need to make sure we have the right structures in place to deliver our omnichannel strategy, and to continue to deliver the amazing River Island in-store experience that our customers know and love.
Some 730,000 fewer people are now on the payroll than in March before the country went into lockdown to combat the killer disease
“With a heavy heart, I can confirm that these changes will potentially impact up to 350 store management and senior sales roles.
“Whilst this is an incredibly difficult decision, these actions are crucial to ensure that our stores continue to effectively play their hugely important role in our omnichannel future.”
River Island has around 300 stores across the UK and has reportedly eyed a Company Voluntary Arrangement (CVA) or other form of insolvency to reduce its rent costs in a bid to save money.
Analysts have warned the grim news is the tip of the iceberg, as the full effects of lockdown have so far been masked by the government’s massive support schemes.
The latest figures today showed that 9.6million jobs have been furloughed, with the Treasury paying out £33.8billion in subisidies.
Many people appear to have chosen to stay economically ‘inactive’ rather than hunt for work – meaning they remain outside the headline unemployment figures.
Figures released tomorrow are due to confirm that the UK has formally entered a recession – with a second consecutive quarter of GDP contracting.
ONS economist Jonathan Athow said: ‘The labour market continues recent trends, with a fall in employment and significantly reduced hours of work as many people are furloughed.
‘Figures from our main survey show there has been a rise in people without a job and not looking for one, though wanting to work.
‘In addition, there are still a large number of people who say they are working no hours and getting zero pay.
‘The falls in employment are greatest among the youngest and oldest workers, along with those in lower-skilled jobs.’