John Lewis has scrapped its staff bonus and signalled possible job cuts as it announced pre-tax losses of £234 million.
This is the second time that the retailer has axed bonuses since the scheme was launched in 1953, after “another very tough year”.
In a letter to the workforce, chairman Sharon White wrote: “I am sorry that the loss means we won’t be able to share a bonus this year or do as much as we would like on pay. We’ll continue to help with the cost of living in other ways – the financial assistance fund will stay at £800,000 (a doubling) and there is support for travel, childcare and living costs.”
While recognising that bonuses would not be on offer, she highlighted that the business had tried to support partners in other ways during the cost-of-living crisis.
White said: “I know you’re feeling the impact of higher inflation, and I hope the £500 (pro rata) cost of living payment and free food over the winter helped.”
The group’s sales fell by 2% to £12.25 billion and the business is therefore tripling its cost savings target to £900 million by January 2026 after “a tough set of results”, she explained.
White added: “As we need to become more efficient and productive, that will have an impact on our number of partners. That’s a massive regret to me personally. It would be difficult enough in any business. It’s particularly tough in the Partnership, when everything we do is with one goal in mind: ‘happier people, happier business and happier world’.
“We’re not just employees; together we own the Partnership. That’s a huge responsibility as well as privilege – in the good times and when it’s tough. I feel it acutely. By seizing the opportunities to transform, we will secure the Partnership’s future for another 100 years.
