According to Sky News, the retailer will unveil its widespread redundancy plan “within days”, with hundreds of jobs expected to be axed.
It comes as CEO Steve Rowe is looking to “accelerate” the restructuring of the group over the coming months, as part of its ‘Never the same again’ plan that was unveiled last May.
According to Sky, the group will announce the initial phase of restructuring this week, when it is expected to confirm the “substantive” cuts to its workforce. The expected job cuts are set to make it “extremely difficult” for the group’s board to accept the Treasury’s proposed bonus payments, Sky News added.
It comes as Marks and Spencer previously announced that profit before tax tumbled 20.2% in the full-year ended 28 March 2020.
In its latest results, the retail giant also predicted that the impact of the crisis on sales and stock flow would “last through the year”, as it outlined plans to reduce costs by around £500m this year.
At the time, Rowe said: ““From the outset we recognised that we were facing a crisis whose effects and aftershocks will endure for the coming year and beyond.
“Whilst some customer habits will return to normal others have changed forever, the trend towards digital has been accelerated, and changes to the shape of the high street brought forward.”
According to the Centre for Retail Research, almost 24,348 retail jobs have been scrapped in the first six months in light of the ongoing effects from coronavirus.