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WHSmith to cut up to 1,500 jobs as pandemic dents sales

By Michele Maatouk

Date: Wednesday 05 Aug 2020

WHSmith to cut up to 1,500 jobs as pandemic dents sales

(Sharecast News) - Retailer WHSmith said on Wednesday that it could cut as many as 1,500 jobs as it restructures its UK operations after the coronavirus pandemic dented sales.
The company - which has a big presence across the UK's travel network - said total group revenue in July slumped 57%, with travel revenue down 73% and High Street sales 25% lower. WHSmith said that while sales have started to recover gradually as lockdown restrictions ease around the world, they are still "materially down" compared to last year.

It now expects to deliver a headline pre-tax loss for the year ending 31 August of between £70m and £75m.

Chief executive Carl Cowling said: "In our travel business, while we are beginning to see early signs of recovery in some of our markets, the speed of recovery continues to be slow. At the same time, while there has been some progress in our High Street business, it does continue to be adversely affected by low levels of footfall.

"As a result, we now need to take further action to reduce costs across our businesses. 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."

WHSmith said it was starting a collective consultation on a proposed restructure which could lead to around 1,500 roles becoming redundant. It estimated the cost of the restructure at £15m to £19m.

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