- Footwear brand Clarks will lay off over 150 employees.
- The footwear giant is reporting losses. It faces weakening consumer demand and rising costs.
The traditional footwear giant is in trouble. Up to 150 employees may lose their jobs. The layoffs will affect the retailer's global offices, including its British branch in Somerset and its American branch in Massachusetts. Other locations are unknown for now.
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More than 250 Clarks employees lost their jobs
Foreign media report that this will be the last round of layoffs. A year ago, the company laid off 103 employees to "protect the progress that has been made over the last few years in its trading performance." This was the argument given by the company in its financial statements.
And what about the retailer's finances? Clarks reported a pre-tax loss of £39.8 million in 2023, compared with a profit of £35.9 million a year earlier. Sales rose 1.4% to £994.5m.
It was added that the loss included, among others: one-off costs of £52.8 million. In operational terms, the loss is £20.3 million. The seller attributes it to weak demand, excessive inventories at partners or rising production costs.
The statement said: "The combination of the above factors resulted in the loss. The business and trade environment at the end of 2023 is characterized by continued uncertainty and relative pessimism, particularly in the Western Hemisphere."
shutterstock The Clarks brand is in trouble
Clarks is losing its management team
Clarks CEO Jonathan Ram left the company early last month. A few weeks later, British and Irish retailer managing director Bob Neville and product director Victoria Jones left.
The company is currently run by CEO Colin Li and a group of directors. They formed an interim executive committee. They are to run the company until a successor is found.
The roots of the Clarks brand date back to 1825. In Somerset, England, two brothers came up with the idea to produce slippers. It was a very comfortable footwear made of sheepskin. The brand says it is characterized by innovation, conscientiousness and craftsmanship. It focuses on user comfort.
Today, the Clarks brand is known all over the world. The brand's footwear is generally considered comfortable and solidly made.
