Clarks faces job cuts as financial losses mount
Shoe company Clarks is in trouble. Up to 150 employees may lose their jobs. The layoffs will affect the retailer's global offices, including the UK branch in Somerset and the US branch in Massachusetts.
5:04 PM EDT, June 20, 2024
According to "Drapers," at the end of last year, the company laid off 103 employees to "protect the progress the group has made over the last couple of years." This was the justification given by the company in its financial report.
According to the portal, Clarks reported a pre-tax loss of £39.8 million ($49.2 million) in 2023, compared to a profit of £35.9 million ($44.4 million) the previous year. The company attributes this to weak demand, excessive stock with partners, and rising production costs.
At the beginning of May 2024, Clarks CEO Jonathan Ram left the company. A few weeks later, Bob Neville, the managing director of the UK and Ireland retail network, and product director Victoria Jones also departed.
Chairman Colin Li and a group of directors currently manage the company. They have formed an interim executive committee to lead the company until a successor is found.
The German shoe retailer MyShoes, part of the Deichmann Group, plans to cease operations in Austria and Germany by the end of 2024. The decision includes 29 sales points in Austria and 61 branches in Germany.
