John Lewis Reduces Redundancy Pay, Raises Speculation of Job Cuts

John Lewis, the department store retailer and owner of Waitrose, has announced a reduction in its redundancy payouts for staff, leading to speculation of potential job cuts. In an internal memo, the company stated that it would be lowering the redundancy pay to one week’s salary per year of service, down from the previous two-week policy. The memo explained that the high cost of redundancy pay has hindered the company’s ability to invest in other areas.

This move has raised concerns among employees, as it follows John Lewis’ warning last year of staff cuts and the elimination of bonuses due to reduced consumer spending. The decision to reduce redundancy pay has fueled speculation that more job cuts may be on the horizon for the struggling retailer.

A spokesperson for John Lewis emphasized that the company still offers a generous package compared to market standards and that the motivation behind the changes is to allocate more resources towards rewarding current employees rather than those who have left the company.

John Lewis has been facing financial difficulties, with its owner, the John Lewis Partnership, reporting losses. Chairman Sharon White will be stepping down from her position in February, leaving behind a challenging financial situation.

Proper Nouns: John Lewis, Waitrose, Sharon White