26 January 2024 , 08:14
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John Lewis Partnership is set to cut its redundancy pay package for workers in half, sparking fears of more job cuts.
The retail giant, which owns both John Lewis department stores and Waitrose supermarkets, announced the changes as part of a major cost-cutting overhaul. Employees were told on Thursday that the company's redundancy pay plan will be reduced.
Currently, workers receive two weeks of redundancy pay for every year they've worked at the business. This will now be cut to one week of pay per year.
In addition to this, the minimum payment for redundancy will increase from one week's salary to four. A spokesperson for JLP said: "We offer a generous and attractive range of benefits that includes a redundancy package, which will continue to be above the market."
"We're making changes as a high proportion of our current benefits package is weighted towards partners after they have left, when we want to better reward those currently working for us. These changes will allow us to invest more in our partners still within the business."
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The company has cut thousands of jobs since it launched its turnaround plan almost four years ago, involving the closure of high street stores and head office redundancies. Thursday's announcement comes after the employee-owned business cautioned last March about potential future job losses as an aggressive turnaround plan was pursued.
In its latest update on performance last September, JLP revealed another financial loss, albeit reduced to £59 million amid ongoing recovery efforts. Chairwoman Dame Sharon White also warned that the five-year transformation plan, set out by the retail group in 2020, will require an additional two years to complete.
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