News Flash

Marks & Spencer to cut 1230 jobs

24 Jan '09

4 min read

• We are proposing to reduce the costs of our head offices, subject to consultation with staff, with the loss of up to 450 jobs, representing around 15% of our head offices headcount.
• We will be making changes to the Marks & Spencer Final Salary Pension scheme by capping employees' annual increases in pensionable pay to 1%iv and changing the early retirement benefits for members who joined the scheme before 1996.

“We remain committed to maintaining our strong financial position. Capital expenditure for 2008/09 is expected to be no more than £700m and no more than £400m in 2009/10. We continue to target to be broadly cash neutral in 2008/09. We have no short term refinancing requirements.”

“We are aware that the proposed changes set out above will be difficult for those members of staff impacted, but given that we expect challenging economic conditions to continue for at least the next 12 months we believe we are taking the right action to maintain the strength of our business.”

We will update on our fourth quarter sales on 31 March 2009. Full year results for 2008/09 will be announced on 19 May 2009.

Marks & Spencer

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