Clarks, a shoe retailer, has laid off more than 1200 employees after its sales fell by nearly PS100 million during the most recent financial period.
The company filed new accounts at Companies House, which show that its workforce fell from 7,413 employees to 6,161 during the same time period. It also posted a loss before tax of PS39.2 millions.
The company stated in a press release that 2024 was an “year of transition” for the business as both internal and external factors posed a number of challenges.
“Externally, we faced challenging global market conditions.
Businesses and consumers were faced with uncertainty due to the high number of elections in countries such as the United States, United Kingdom and India. The European Union, and a few emerging markets also had major elections.
The report said that this economic volatility, along with inflationary pressures had resulted in a reduction of consumer demand.
The Clarks Group said that FY24 was a year for transition, with cost reduction and rationalisation to lay the foundations of our future.
“Significant improvements have been made in the past year in order to adjust the overhead costs to the size of the business, refocus marketing, reposition product offerings, and prepare the business for recovery, and sustainable profit growth in 2025.”
After two years as chief executive of Clarks, Jon Ram will resign in April 2024. The company is being run by an interim executive board.
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