Debenhams to cut 2,500 more jobs amid pandemic
Struggling department store group Debenhams says it will cut 2,500 more jobs as it struggles to survive the coronavirus pandemic.
This is on top of the 4,000 announced since May, meaning the retailer will have cut a third of its workforce.
The cuts will be mainly across its UK stores and distribution centre, but it said no new shops were slated to shut.
Shop workers' union Usdaw reacted angrily to the news, saying legal procedures had not been followed.
By law, mass redundancies have to be subject to a consultation period. Usdaw said it was preparing a legal challenge on behalf of members affected.
"We have been contacted by members who say they are being made redundant by conference call, with no meaningful consultation or proper notice period, as required by law," said union national officer Dave Gill.
"That is an appalling way to treat staff."
'Difficult decisions'
Debenhams, which is currently in administration, declined to comment but its administrators, FRP, said consultation had not been possible as the retailer was insolvent and had "limited" options.
A spokesman said: "Those affected by redundancy will take no particular comfort from this, but the steps taken are in response to an unpredictable and challenging trading environment and aim to ensure the future viability of the business, while also meeting wider statutory obligations."
In April, Debenhams fell into administration for the second time in a year as coronavirus heaped pressure on the business.
The firm said the current trading environment for retailers was still "a long way from returning to normal".
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Earlier this year, it said 20 of its stores would remain permanently closed because of the impact of the pandemic.
Debenhams said on Tuesday: "Such difficult decisions are being taken by many retailers right now, and we will continue to take all necessary steps to give Debenhams every chance of a viable future.
"We have to ensure our store costs are aligned with realistic expectations," it added.
The chain said that people affected had been informed and thanked them for their "service and commitment".
"We have successfully reopened 124 stores post-lockdown, and these are currently trading ahead of management expectations," it said.
Retail redundancies
Debenhams could remain in administration for the rest of this year, as lenders wait to see how it performs post-lockdown and in the crucial Christmas trading period.
Like many of its competitors, the retailer was already ailing before the pandemic forced it to suspend trading at its department stores.
The news of the latest job cuts came after the British Retail Consortium said the number of visits to High Streets was still down significantly as people shopped online instead.
The BRC said some retailers were continuing to struggle because of the coronavirus crisis. It made a fresh call for government help with rents.
Other High Street names have also announced job losses as they fight to stay afloat.
Last week, WH Smith said it was cutting 1,500 jobs - 11% of its workforce - after the lockdown caused sales to plummet.
DW Sports, John Lewis, Marks and Spencer, Boots and Selfridges are among other big names to announce redundancies.
It's less than two weeks into August and at least another 10,000 jobs have been lost as the furlough scheme starts to wind down.
Here, courtesy of the Press Association news agency, is a list of some major employers that have announced that jobs will go, or are at risk, since the start of the pandemic.
August 11: Debenhams - 2,500
August 7: Evening Standard - 115
August 6: Travelex - 1,300
August 6: Wetherspoons - 110 to 130
August 5: M&Co - 380
August 5: WH Smith - 1,500
August 4: Dixons Carphone - 800
August 4: Pizza Express - 1,100 at risk
August 3: Hays Travel - up to 878
August 3: DW Sports - 1,700 at risk
July 31: Byron - 651
July 30: Pendragon - 1,800
July 29: Waterstones - unknown number of head office roles
July 28: Selfridges - 450
July 27: Oak Furnitureland - 163 at risk
July 23: Dyson - 600 in UK, 300 overseas
July 22: Mears - fewer than 200
July 20: Marks & Spencer - 950 at risk
July 17: Azzurri Group (owns Zizzi and Ask Italian) - up to 1,200
July 16: Genting - 1,642 at risk
July 16: Burberry - 150 in UK, 350 overseas
July 15: Banks Mining - 250 at risk
July 15: Buzz Bingo - 573 at risk
July 14: Vertu - 345
July 14: DFS - up to 200 at risk
July 9: General Electric - 369
July 9: Eurostar - unknown number
July 9: Boots - 4,000
July 9: John Lewis - 1,300 at risk
July 9: Burger King - 1,600 at risk
July 7: Reach (owns Daily Mirror and Daily Express newspapers) - 550
July 6: Pret a Manger - 1,000 at risk
July 2: Casual Dining Group (owns Bella Italia and Cafe Rouge) - 1,909
July 1: SSP (owns Upper Crust) - 5,000 at risk
July 1: Arcadia (owns TopShop) - 500
July 1: Harrods - 700
July 1: Virgin Money - 300
June 30: Airbus - 1,700
June 30: TM Lewin - 600
June 30: Smiths Group - "some job losses"
June 25: Royal Mail - 2,000
June 24: Jet2 - 102
June 24: Swissport - 4,556
June 24: Crest Nicholson - 130
June 23: Shoe Zone - unknown number of jobs in head office
June 19: Aer Lingus - 500
June 17: HSBC - unknown number of jobs in UK, 35,000 worldwide
June 15: Jaguar Land Rover - 1,100
June 15: Travis Perkins - 2,500
June 12: Le Pain Quotidien - 200
June 11: Heathrow - at least 500
June 11: Bombardier - 600
June 11: Johnson Matthey - 2,500
June 11: Centrica - 5,000
June 10: Quiz - 93
June 10: The Restaurant Group (owns Frankie and Benny's) - 3,000
June 10: Monsoon Accessorise - 545
June 10: Everest Windows - 188
June 8: BP - 10,000 worldwide
June 8: Mulberry - 375
June 5: Victoria's Secret - 800 at risk
June 5: Bentley - 1,000
June 4: Aston Martin - 500
June 4: Lookers - 1,500
May 29: Belfast International Airport - 45
May 28: Debenhams (in second announcement) - "hundreds" of jobs
May 28: EasyJet - 4,500 worldwide
May 26: McLaren - 1,200
May 22: Carluccio's - 1,000
May 21: Clarks - 900
May 20: Rolls-Royce - 9,000
May 20: Bovis Homes - unknown number
May 19: Ovo Energy - 2,600
May 19: Antler - 164
May 15: JCB - 950 at risk
May 13: Tui - 8,000 worldwide
May 12: Carnival UK (owns P&O Cruises and Cunard) - 450
May 11: P&O Ferries - 1,100 worldwide
May 5: Virgin Atlantic - 3,150
May 1: Ryanair - 3,000 worldwide
April 30: Oasis Warehouse - 1,800
April 29: WPP - unknown number
April 28: British Airways - up to 12,000
April 23: Safran Seats - 400
April 23: Meggitt - 1,800 worldwide
April 21: Cath Kidston - 900
April 17: Debenhams - 422
March 31: Laura Ashley - 268
March 30: BrightHouse - 2,400 at risk
March 27: Chiquito - 1,500 at risk.