JOB CUTS
WHSmith warns 1,500 jobs at risk as coronavirus deals latest high street blow
WH Smith has warned it could axe up to 1,500 jobs as the pandemic has caused a dramatic drop in the number of shoppers visiting its stores.
A spokesperson told The Sun that around 14 WH Smith kiosks at train and bus stations are at risk of closure, affecting 50 jobs.
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The rest of the cuts will be reducing the number of staff in bigger airport and travel stores.
The retailer is looking to restructure its UK side of the business after sales dropped by 57 per cent in July compared with the same month last year.
The high street retailer said that its travel arm, which accounts for 75 per cent of business, has been worst hit by the impact of the Covid-19 outbreak.
It added that while shoppers were coming back to branches in airports and train stations it isn't even close to the levels seen before the coronavirus crisis.
What are my redundancy rights?
BEFORE making you unemployed, your employer should still carry out a fair redundancy process.
You are entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you've been working somewhere for at least two years.
How much you're entitled to depends on your age and length of service, although this is capped at 20 years. You'll get:
- Half a week’s pay for each full year you were under 22,
- One week’s pay for each full year you were 22 or older, but under 41,
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won't be entitled to a payout if you've been working for your employer for fewer than two years.
There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.
You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.
The restructure comes as many Brits continue to work from home, despite the Prime Minister urging employees to head into offices if they can.
Thousands of holidaymakers are also dodging airports and heading for a staycation instead as uncertainty continues over trips abroad.
WH Smith chief executive, Carl Cowling, said that footfall is also low in high street stores.
It's not clear if the proposed restructure will see any stores closed, but the firm believes it will cost the company between £15million and £19million.
The retailer said it now expects to make a loss of between £70million and £75million for the year to August.
It is now consulting with staff over the plans that could see more than a thousand employees out of a job.
If the job cuts go ahead, it will be the latest blow to the high street following lockdown.
Today, William Hill announced that it has permanently closed 119 stores affecting around 320 employees.
Yesterday, Pizza Express warned that it may close 67 UK restaurants putting 1,100 jobs at risk, while Currys PC World plans to cut 800 jobs.
In a statement Mr Cowling said: "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."
The company said just over half of its UK travel shops have reopened and that 246 of its largest sites have started trading again.
During lockdown, 203 WH Smith stores stayed open because they had Post Office counters in them, which were classed as essential by the government.
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All of the chain's 575 high-street stores have now reopened.
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Mr Cowling added: "While we are mindful of the continuing uncertainties that exist, we are a resilient and versatile business.
"The operational actions we are taking along with the financing arrangements that are in place, put us in a strong position to navigate this time of uncertainty and we are well positioned to benefit in due course from the recovery of our key markets."
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