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| John Lewis axes third of top jobs in restructuring | John Lewis axes third of top jobs in restructuring |
| (32 minutes later) | |
| A third of senior management jobs will be axed at the John Lewis Partnership as the company streamlines its structure from February next year. | A third of senior management jobs will be axed at the John Lewis Partnership as the company streamlines its structure from February next year. |
| The partnership is merging the managements of its High Street department stores and Waitrose grocery chain into a single team. | The partnership is merging the managements of its High Street department stores and Waitrose grocery chain into a single team. |
| John Lewis has been struggling in a tough retail climate. | John Lewis has been struggling in a tough retail climate. |
| The restructuring aims to save £100m, through the loss of about 75 of its current 225 senior head office roles. | The restructuring aims to save £100m, through the loss of about 75 of its current 225 senior head office roles. |
| One of the senior partners who will depart is Rob Collins, managing director of Waitrose, who has been with the business for 26 years. He said there was not a role in the new structure that he believed would be right for him. | |
| John Lewis chairman Sir Charlie Mayfield said: "These changes will be difficult for some of our Partners and we will implement as carefully and sensitively as we can." | |
| Employees at John Lewis, including both management and shop floor staff, are known as "partners" due to the company's profit-sharing model. | |
| There would be "little or no disruption" for customers, he said, but the restructuring would create a more unified leadership team and cost structure. | There would be "little or no disruption" for customers, he said, but the restructuring would create a more unified leadership team and cost structure. |
| Last month, the retailer reported a half-year loss for the first time in its history amidst a difficult UK retail environment. | Last month, the retailer reported a half-year loss for the first time in its history amidst a difficult UK retail environment. |
| "The lesson of the last two years is that we need more innovation, faster decision-making and bolder steps to align our operating model with our strategy," the chairman said. | "The lesson of the last two years is that we need more innovation, faster decision-making and bolder steps to align our operating model with our strategy," the chairman said. |
| The company said of the customers that accounted for its greatest sales, the majority shopped at both its department stores and at Waitrose. | The company said of the customers that accounted for its greatest sales, the majority shopped at both its department stores and at Waitrose. |
| Retail analyst Richard Lim said it was a "bold" move which should deliver cost-saving efficiencies. | Retail analyst Richard Lim said it was a "bold" move which should deliver cost-saving efficiencies. |
| "Against a backdrop of rising costs and fiercer competition, a new leaner and flexible operating model will help restore profitability during a period of rapid change within the sector," he said. | "Against a backdrop of rising costs and fiercer competition, a new leaner and flexible operating model will help restore profitability during a period of rapid change within the sector," he said. |
| However, Thomas Brereton, retail analyst at GlobalData, warned the changes would have to be implemented carefully to avoid disruption. | However, Thomas Brereton, retail analyst at GlobalData, warned the changes would have to be implemented carefully to avoid disruption. |
| "The long-term impact of running a unified strategy for two retailers with such a varied proposition is questionable," he said. | "The long-term impact of running a unified strategy for two retailers with such a varied proposition is questionable," he said. |