Marks And Spencer Share Discussion Threads

[philanderer] 05/9/2016 12:02

Alphaville:

11:52AM

PM
M&S have confirmed these head office sackings

PM
400

PM
hxxp://www.investe...1609051138439578I/

PM
The proposals are centred on plans to reshape and redefine the organisation by reducing the number of Head Office roles by a net reduction of c.525 roles and also reduce the number of roles permanently based in central London by c.400, across IT and Logistics, as part of the retailer's strategy to work more simply and more efficiently. The net reduction would be achieved through a combination of fewer contractors, natural attrition and redundancies for M&S employees.

BE
Think Kleinmanwire said 500 over the weekend.

PM
Should the proposals go ahead they would deliver significant cost savings. It is expected that annualised operating cost savings would be c.1% of the UK cost base. Cost growth guidance for the current year remains unchanged at c.3.5%. There would be a non-underlying cost of c.£15m which includes the changes to the senior management team that have already taken place.

Marks and Spencer Group PLC (MKS:LSE): Last: 351.70, down 2.4 (-0.68%), High: 356.00, Low: 349.50, Volume: 2.44m

PM
The review highlighted that M&S has become too complex and inefficient and today's proposals aim to address this by removing duplication, driving accountability and establishing clear, consistent processes; which in turn will strip out unnecessary costs. M&S has used the basis of the review to reshape and redefine the organisational structure in line with its strategy

BE
Not sure it does much for the investment case, really.

PM
Hang on

PM
- M&S employs over 3,500 people working across its seven UK Head Offices

PM
It has seven head offices

PM
In the UK

BE
Yeah, I was moving towards that.

BE
What would help M&S's investment case -- memo to Steve Rowe -- is to light an actual bonfire under the organisational structure.

BE
First thing to to would be to separate -- as in, actually separate, reporting each side individually -- the food and the general merchandise business.

BE
The result of that will be that the GM business will look even worse than everyone thought, mostly because it's operating on freeholds whereas the food business has a lot of lease costs.

BE
Bundling them together, as M&S does as the moment, creates an artificial impression of both businesses and probably helps out a lot of GM people in its seven-headed HQ.

BE
Split 'em. Let's see how bad clothing actually is. Let's start from there.

11:58AM

[philanderer] 05/9/2016 11:55

Confirmed : RELEASE

Marks and Spencer : & SPENCER ANNOUNCES PROPOSED CHANGES TO UK HEAD OFFICE STRUCTURE


Marks & Spencer announces today that it will be entering in to consultation with its employees with regards to proposals to make significant changes to its UK Head Office structure. The proposals have been developed by M&S following a detailed review of the organisation and an analysis of its processes and do not impact on M&S store employees.

The proposals are centred on plans to reshape and redefine the organisation by reducing the number of Head Office roles by a net reduction of c.525 roles and also reduce the number of roles permanently based in central London by c.400, across IT and Logistics, as part of the retailer's strategy to work more simply and more efficiently. The net reduction would be achieved through a combination of fewer contractors, natural attrition and redundancies for M&S employees.

Should the proposals go ahead they would deliver significant cost savings. It is expected that annualised operating cost savings would be c.1% of the UK cost base. Cost growth guidance for the current year remains unchanged at c.3.5%. There would be a non-underlying cost of c.£15m which includes the changes to the senior management team that have already taken place.

Steve Rowe, M&S CEO, said: 'M&S has to become a simpler and more effective organisation if we are to deliver our plans to recover and grow our business.

'It is never easy to propose changes that impact on our people, but I believe that the proposals outlined today are absolutely necessary and will help us build a different type of M&S - one that can take bolder, pacier decisions, be more profitable and ultimately better serve our customers.'

'We remain committed to investing in store staffing and improving our customer experience and therefore our store colleagues are not affected by this proposal.'

The review highlighted that M&S has become too complex and inefficient and today's proposals aim to address this by removing duplication, driving accountability and establishing clear, consistent processes; which in turn will strip out unnecessary costs. M&S has used the basis of the review to reshape and redefine the organisational structure in line with its strategy.

M&S will be entering in to collective consultation with its employees with regards to these proposals via its network of independently elected employee representatives, the National Business Involvement Group, which will give careful consideration to any alternative proposals.

- Ends -

[philanderer] 05/9/2016 10:27

Sure did , one in 14 million chance :-)

[diku] 05/9/2016 10:10

Those lottery winners did have a dream!....& it became a reality...

[philanderer] 05/9/2016 09:55

In the file marked 'In Your Dreams' ;-)

[diku] 05/9/2016 09:41

Now where is that bid or a tie up with Next?...

[philanderer] 05/9/2016 09:14

Nope, not in a million years.

One for the income portfolio if it sorts itself out damn quick and holds the dividend.

[albanyvillas] 05/9/2016 07:12

This is set to fly imho

[philanderer] 04/9/2016 21:35

Hopefully store closures will be announced in november.

[diku] 03/9/2016 18:00

Has MKS been signing off blank cheques to contractors all this time?...cost cutting is generally viewed as good news for share price..

[qantas] 03/9/2016 17:48

Still saving loads of money.....

[dlku] 03/9/2016 17:11

they are contractors. Looks like non news

[diku] 03/9/2016 17:07

It makes you wonder why those 500 were in the jobs in the first place!!....

[bartram] 03/9/2016 12:45

Sky News: M&S to axe 500 jobs at HQ - to be announced next week

Marks & Spencer will axe 500 jobs at its head office next week as its new chief executive attempts to halt a protracted slump in sales which has left the company facing renewed questions about its strategy.

Sky News has learnt that M&S is to cull roughly 15% of the roles at its headquarters in Paddington, London - with more than half of the cuts affecting contractors.

Sources said the cuts, which will follow a statutory period of consultation with employees, are likely to be announced next Thursday.

[diku] 03/9/2016 09:43

Next & Mks ought to tie up together....why compete with each other when they can trade together!...

[rubberbullets] 03/9/2016 06:30

going to 490p on that bowl chart, blacrock over 10 per cent

[philanderer] 02/9/2016 13:14

'Marks & Spencer announces improved pay offer following campaign'

[diku] 01/9/2016 18:43

Shame it didn't kiss 350p today...maybe tomorrow...Next heading towards SMA 200...

[philanderer] 01/9/2016 12:18

The way forward ..

M&S are opening a new food store in Bristol

[philanderer] 01/9/2016 09:31

Guardian:

Marks & Spencer is to be lobbied by MPs and fair pay campaigners after a petition against planned pay cuts gathered almost 90,000 signatures. Siobhain McDonagh MP, who raised the issue in parliament in June, will lead a delegation to present the Change.org petition at the retailer’s Marble Arch store in London on Thursday.

Friends and family of M&S employees who are facing pay cuts will be supported by her fellow Labour MPs John Spellar, Carolyn Harris, Karen Buck and Nia Griffith as well as Change.org campaigners and student activists.

[philanderer] 31/8/2016 17:30

Very much doubt it , doubt any of them have ;-)


"Clearing out M&S`s domestic closet"

[diku] 31/8/2016 14:24

Deutsche got their bank in order?...

[diku] 31/8/2016 10:23

This 345p is proving a brick wall....

[philanderer] 31/8/2016 09:08

31st aug Deutsche hold tp 350p

reiterates