Primark to cut 400 jobs as part of a staffing shake-upJanuary 28, 2022
PRIMARK is to cut as many as 400 jobs as part of a major staffing shake-up.
The fashion giant has 191 stores in the UK, which currently employ 29,000 people.
But bosses have blamed the Omicron variant of coronavirus for keeping shoppers away from stores in recent months, meaning a decline in sales.
Primark’s UK sales were 10% lower in the 16 weeks to January 8 when compared with pre-pandemic levels two years ago.
But the lack of footfall and declining sales mean a drastic change to a large number of workers at the fashion giant.
A restructure of jobs within the company is planned to offset costs that hit the store because of the pandemic.
Bosses are looking to slash operating costs and overheads, and the UK store management structure is going to be simplified too, as part of the programme.
Hundreds of roles will be removed but the changes are making way for a new entry-level management role to be created too.
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Kari Rodgers, Primark retail director for the UK said: “The changes we’re proposing will deliver a simplified and more consistent management structure across all of our stores, provide more opportunities for career progression and offer greater flexibility, all of which are designed to help us provide the best possible experience for both our customers and our colleagues.
"We are now focused on supporting our colleagues who are affected by these proposed changes and will be going through the consultation process.”
Primark's owner, Associated British Foods, has said however, that trading had in fact improved in recent weeks.
Shoppers are starting to ease off fears of Omicron as some measures are relaxed, and they are starting to shop in-store once more.
Primark doesn't offer an online shop, so fans of the fashion retailer haven't been able to get their fix from the comfort of their own home, like with many other fashion giants.
That means the chain relies heavily on its in-store footfall, but the pandemic hasn't helped with shoppers' confidence venturing out to the highstreet.
Despite that, Primark bosses said that like-for-like sales were higher when compared with the final quarter of its last financial year, when stores were shut due to lockdown measures.
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AB Foods said supply chain problems had begun to ease since last autumn, although it is still seeing some delays at ports and with shipments.
Total Primark sales were 36% ahead year-on-year, it added.
Primark wouldn't be the first to cut down on jobs though, energy firm Ovo announced plans to cut its workforce by a quarter just a week ago, amid the growing energy crisis.
Your rights in redundancy
As many companies and retailers look at cutting out large numbers of their workforces, their employees need to know their rights.
You are entitled to statutory redundancy pay, but only if you have worked at your job for two years or more.
The statutory rate is based on your age, weekly pay and number of years in the job.
You will get:
- Half a week’s pay for each full year you worked aged under 22
- One week’s pay for each full year you worked aged 22 or older, but under 41
- One and half week’s pay for each full year you worked while aged 41 or older.
But it's capped at 20 years and the max redundancy pay you can get is currently £16,320.
Plus, you are still entitled to any holiday pay you are owed for untaken holiday days at the end of your notice period.
The government has a calculator on its website to help you work out how much you are owed.
It's worth keeping in mind that you may get more than the statutory amount too, if your employer has a redundancy scheme.
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