103 positions at British shoe retailer Clarks are at risk of redundancies.
The brand is on a stable financial basis, but in order to maintain the recovery after the pandemic, operating costs must be strictly controlled, said a company spokesman when asked by FashionUnited. In order to reduce costs and secure the long-term development of the company, a total of 103 positions in the global team will be cut. The employees affected by the layoffs have already been informed about the job cuts.
The traditional company justified the wave of layoffs with the difficult economic headwinds and the current cost of living crisis, which are having a negative impact on Clarks’ business results.
C&J Clark International, which manages Clarks’ operations in the UK, part of its wholesale business in Europe and all of its wholesale business in Asia, reported a decline in sales and profits in 2022. The reason for this was bottlenecks in the supply chain, which weakened the increase in demand after the pandemic.
In the 12 months ended December 31, 2022, the company generated sales of 502.8 million British pounds (574.73 million euros), a decrease of 2 percent compared to the previous year, according to the annual report presented at the end of September. The aforementioned cost of living crisis and high inflation particularly led to a weakening of direct sales in the second half of 2022.
Clarks expects these challenges to continue well into 2024.