John Lewis workers see bonuses slashed for sixth year in a row as retail giant’s annual profits slump by nearly half to £160million
- Retail giant has revealed a 45.4 per cent fall in its annual profits this morning
- John Lewis will reduce bonus to three per cent of its workers’ annual salary
- The firm’s 83,000 partners share pot worth £44.7m, down from £74m
Staff at John Lewis Partnership will have bonuses cut for the sixth consecutive year as the retail giant revealed a 45.4 per cent fall in annual profits to £160million.
The group said it will reduce the renowned bonus to 3 per cent of annual salary, with 83,000 partners sharing a pot worth £44.7million, down from £74million the previous year.
John Lewis has now cut the bonus for six years running, and the latest figure is down from 5 per cent last year.
John Lewis has now cut the bonus for six years running, and the latest figure is down from 5 per cent last year
The partnership, which includes upmarket supermarket Waitrose, warned in January that it might have to axe the renowned payout for the first time since 1953 as it battles challenging trading conditions.
Chairman Sir Charlie Mayfield said: ‘In line with expectations set out in June, our partnership profits before exceptionals have finished substantially lower in what has been a challenging year, particularly in non-food.
‘The board has awarded a bonus at 3%. This enables us to continue debt reduction, maintain our level of investment, and retains solid cash reserves to cope with the continuing uncertainty facing consumers and the economy.
‘We expect 2019 trading conditions to remain challenging but are confident in our strategic direction and customer offer across both brands.’