Clarks faces job cuts amid financial woes and executive exits

Shoe company Clarks is in trouble. Up to 150 employees may lose their jobs. The layoffs will affect the retailer's global offices, including the UK branch in Somerset and the US branch in Massachusetts.

According to "Drapers," at the end of last year, the company laid off 103 employees to "protect the progress made in recent years in trading results." This was the justification given by the company in its financial report.

According to the portal, Clarks reported a pre-tax loss of £39.8 million (about £39.8 million) in 2023, compared to a profit of £35.9 million (about £35.9 million) the previous year. The company attributes this to weak demand, excessive stock with partners, and rising production costs.

At the beginning of May 2024, Clarks CEO Jonathan Ram left the company. A few weeks later, Bob Neville, the managing director of the UK and Ireland retail network, and product director Victoria Jones also departed.

The company is currently managed by Chairman Colin Li and a group of directors. They have formed an interim executive committee to lead the company until a successor is found.