WH Smith is set to axe 1,500 staff due to plunge in customers during pandemic – as devastating scale of Britain’s jobs bloodbath rises above 100,000 workers facing redundancy
- High street giant says the proposals expected to cost between £15m and £19m
- Group revenues were down 57% in July compared with the same month last year
- Retailer expects to make loss of between £70m and £75m for the year to August
WH Smith is set to axe up to 1,500 jobs after a plunge in customers going into its stores during the coronavirus pandemic.
The high street giant said today the proposals are expected to cost the company between £15 million and £19 million, after group revenues were down 57 per cent in July compared with the same month last year.
It is the latest victim of Britain’s jobs bloodbath, with the number of workers facing redundancy as a result of the Covid crisis now above 100,000.
WH Smith is set to axe up to 1,500 jobs after a plunge in customers going into its stores during the coronavirus pandemic
The retailer said it needed to reduce costs as its shops in airports and train stations are hit by low passenger numbers and its high street stores also suffer from low footfall.
Just over half of its UK travel shops have reopened and 246 of its largest sites have started trading again.
All of its 575 high-street stores have opened, the business said, but footfall is strongly down compared to last year.
Revenue was 57 per cent lower last month compared to July 2019, even as sites started to welcome customers back, with most of this loss coming from the travel arm.
‘We now need to take further action to reduce costs across our businesses,’ said chief executive Carl Cowling.
‘I regret that this will have an impact on a significant number of colleagues whose roles will be affected by these necessary actions and we will do everything we can to support them at this challenging time.’
The company said it now expects to make a loss of between £70 million and £75 million for the year to August.
Last Friday, business leaders warned that Boris Johnson postponing a further easing of England’s coronavirus lockdown was a ‘hammer blow’ to the economy.
The British Chambers of Commerce said businesses and consumer confidence will be damaged again after the Prime Minister warned the UK ‘cannot be complacent’ amid a rise in the Covid-19’s prevalance in communities.
BCC co-executive director Claire Walker said: ‘While tackling the public health emergency must be the priority, these announcements – made at short notice – will be a hammer blow to business and consumer confidence at a time when many firms were just starting to get back on their feet.
‘Businesses communities need as much clarity as possible from government if they are to plan ahead and rebuild their operations in the coming months.
‘Ministers must also consider extending support to all firms, many of whom will be forced to close for an even more prolonged period, as well as targeted measures to help businesses placed under localised lockdowns.’
Also last Friday, Matthew Fell, the Confederation of British Industry’s chief UK policy director, said: ‘This news will come as a real disappointment for some businesses, but firms know that public safety comes first. Businesses will continue to do what is necessary to avoid an infection spike.
‘Delayed reopening will unfortunately lead to even more financial pressure for some companies. So there may yet be a need for more direct support to shore up cash flow, including extended business rates relief.’