Clarks is looking to cut more than 150 jobs after plunging to a loss amid weakened consumer demand and rising costs.
Staff at risk of redundancy are understood to be across the footwear retailer’s global offices, which include UK headquarters in Somerset and an American head office in Massachusetts, Drapers reported.
It is the latest round of job cuts and follows the dismissal of 103 members of staff in 2023 to “protect the progress has made over the last couple of years” on its trading performance, the company said in its latest financial results.
Clarks plunged to a pre-tax loss of £39.8m in the year to 31 December, down from a profit of £35.9m the year before, as sales edged up 1.4% to £994.5m.
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It noted that the loss included one-off costs of £52.8m with store impairments totalling £41.6m.
On an operating basis, it lost £20.3m that the retailer attributed to soft demand in full-price channels, overstocked wholesale partners, a promotional marketplace and rising product costs.
It said in a statement: “A combination of the above factors has resulted in loss after tax performance short of target expectations and last year’s levels.
“The business and trading environment at the close of 2023 is one of ongoing uncertainty and relative pessimism, especially in the Western hemisphere.”
Clarks CEO Jonathan Ram left the business at the start of last month, followed by the retailer’s UK and Ireland managing director Bob Neville and chief product officer Victoria Jones a few weeks later.
The company is currently being run by chairman Colin Li and a group of directors, who have formed an interim executive committee to lead the business until a replacement is found.
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