WH Smith issue major update on future after putting 1,500 jobs at risk

WH Smith is planning to cut up to 1,500 jobs as bosses said its recovery from the Covid-19 lockdown has been “slow”.

Wednesday, 5th August 2020, 11:14 am

The retailer, which has an outlet on Fargate, said it is starting to consult with staff over plans that could see as many as 1,500 of them losing their roles.

The company said it needs to reduce costs as its shops in airports and railway stations have been hit by low passenger numbers and its high street stores have also suffered from low footfall.

It said just over half of its UK travel shops have reopened and that 246 of its largest sites have started trading again.

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A general view of a branch of WHSmith as the retailer said it could axe up to 1,500 jobs after the pandemic pushed down the number of customers going into its stores.

All 575 of its high street stores have opened, the business said, but footfall is strongly down compared with last year.

Revenue was 57 per cent lower last month compared with July 2019, even as sites started to welcome customers back, with most of this loss coming from the travel arm.

“We now need to take further action to reduce costs across our businesses,” said chief executive Carl Cowling.

“I regret that this will have an impact on a significant number of colleagues whose roles will be affected by these necessary actions, and we will do everything we can to support them at this challenging time.”

Although travel revenue has started to recover from April, when it was down 92 per cent on last year, sales were still nearly three-quarters lower in July.

The high street business, meanwhile, has gone from 71 per cent down in April to 25 per cent down in July compared with the same months in 2019.

The company said its loss before tax is likely to reach between £70 million and £75 million for the year ending August 31. The results will be announced in November.

Mr Cowling added: “Covid-19 continues to have a significant impact on the WHSmith Group. Throughout the pandemic, we have responded quickly and taken decisive actions to protect the business, including substantially strengthening our financial position. We have also welcomed support from Government where available.”