What: John Lewis is reducing its customer service workforce, impacting hundreds of employees contracted through Foundever, a company that has partnered with the retailer for 17 years to manage a significant portion of its customer service operations.

Why it is important: This move reflects John Lewis's ongoing efforts to restructure its business model to enhance efficiency and customer satisfaction. It comes amidst broader strategic changes aimed at returning the company to profitability following significant losses, including a GBP 234 million loss last year.

John Lewis, a prominent UK department store chain, is facing significant changes as it announces job cuts within its customer service department. The retailer is reducing its workforce by approximately 200 employees, all of whom are contracted through Foundever, a firm that has managed the majority of John Lewis's customer service for the past 17 years. This reduction is part of a broader strategy to resize the in-house customer service team to its pre-Christmas level. While John Lewis is actively seeking alternative roles within the company for the affected workers, it acknowledges that some will inevitably face redundancy. This development is part of a larger turnaround plan that includes slashing up to 11,000 jobs, as announced by Sharon White, who also projected that John Lewis would return to profit this year after a substantial loss in the previous year.

John Lewis implements customer service staff reductions