Marks & Spencer to cut 7,000 jobs as clothing sales collapse

London CNN Business — Marks & Spencer will axe 7,000 jobs over the next three months, delivering another blow to the struggling UK economy as the pandemic changes the way people work and shop. The venerable UK retail chain, which sells clothes, food and household goods, said in a statement Tuesday that cuts to its 78,000-strong workforce will be made in support functions, in regional management and in its UK stores, “reflecting the fact that the change has been felt throughout the business.” “It is clear that there has been a material shift in trade and whilst it is too early to predict with precision where a new post Covid sales mix will settle, we must act now to reflect this change,” added the company, which was founded in 1884 and nowoperates in 62 international markets. Marks & Spencer is the latest UK retailer to slash jobs, as the pandemic crushes clothing sales and accelerates a shift to e-commerce that was already hurting physical stores. Marks & Spencer CEO Steve Rowe said in a statement that the changes announced Tuesday “are an important step in becoming a leaner, faster business set up to serve changing customer needs.” The company said it expects to create a number of new jobs as it invests in its online business, in food retailing and in reshaping its store portfolio.