John Lewis to downsize head office in cost-cutting efforts
The partnership, which also comprises Waitrose, announced its plans to move offices last year as the lease of the current Victoria head office is due to run out
John Lewis is looking to halve its office space in an effort to cut costs through a loose hybrid working approach, as the company is now hunting for an office of 100,000 sq ft compared with its current 220,000 sq ft space, The Times has reported.
The partnership, which also comprises Waitrose, announced its plans to move offices last year as the lease of the current Victoria head office is due to run out.
According to John Lewis, the move to a smaller office ‘reflects the space its staff need’, as fewer are coming into the office. The retailer currently does not have a company-wide policy on the ratio of office to remote-working days.
A spokesman for John Lewis told The Times: “We announced last year that we’re moving to a new London office that better suits our needs when our current lease ends next year. Like many businesses we don’t need as much space now we have a blended approach to working.”
In recent times, the retailer has been battling against inflation, which, according to chairman Dame Sharon White, has hit the John Lewis Partnership “like a hurricane”.
As a result, losses have increased to £230m, and in March, the retailer warned of job cuts, having increased its cost-cutting target from £300m to £900m.
White said: “As we get more efficient, less time has to be spent on processes, things like replenishment of our shelves or night-time picking for online orders, that… inevitably means fewer partners.”