Jarrold looking to reduce ‘20pc of employment costs’
PUBLISHED: 09:21 20 June 2020
The boss of Jarrold has told staff employment costs need to be cut by 20pc.
The retailer, which announced it is to begin a consultation process with staff over potential job losses, confirmed more details after an email sent to staff from chief executive Minnie Moll was seen by this newspaper.
In the email Ms Moll speaks from the heart, saying: “The timing of this feels really unfair. We were on a roll. It’s our 250th anniversary. It feels like Jarrold should somehow be immune, that our very spirit and heart and sense of family should protect us – but I’m afraid it can’t.
“This pandemic has been indiscriminate in the way that it has impacted individuals and businesses alike. We will survive this. But we wouldn’t if we didn’t make tough decisions now that are necessary for the future of the business.”
A spokesman from Jarrold said: “The employee consultation has yet to begin and we won’t know the outcome until it is completed. It is the business’ intention to reduce employment costs by approximately 20pc.
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“Jarrold Retail is a well-run and managed business and we have no intention of closing. However, due to the unprecedented nature of the Covid-19 pandemic and the impact this has had on the business, we are having to take these steps to ensure the long-term sustainability of the company.”
Ms Moll added in the email: “I’m sorry that circumstances mean I can’t tell you all this face to face but I must inform you that we will have to consider redundancies. If we do not cut our costs in response to such a drop in revenue, we could run out of cash and the business would collapse. We simply can’t afford to lose millions of pounds. We have to reduce our employment costs as they are the biggest cost of running our business.”
Ms Moll goes on in the email to state last year had been “the toughest year on record for retail” with Jarrold seeing its profits decline.
“We have lost over £1m so far because of 12 weeks of closure and paying salaries while we had no income. Online sales have brought cash into the business but nowhere near what we have lost in store sales. Our sales for the foreseeable future will be significantly reduced because of social distancing and ongoing fear about Covid, which may last until there is a vaccine.”
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