WHSmith confirmed that it is looking for a buyer to take over its high-street shops, which may put the staff of its 500 stores at risk of being laid off.
The retailer will focus on its travel branches at airports, train stations, and hospitals that currently generate about three quarters of its PS1.9bn revenue annually and 85% trading profit.
Around 5,000 of the 13,870 employees are high-street staff. WHSmith has not confirmed rumours that a number restructuring and turnaround companies would be interested in taking over the stores.
Travel business has now more than 1200 stores in 32 countries. The change in consumer behavior has affected its high street business. Most people read news online and download books instead of buying physical copies.
According to the latest financial data, revenue for high-street stores will drop by PS17million in 2024.
The company released a statement that said: “WHSmith confirms it is exploring possible strategic options for this cash-generating and profitable part of the Group, including a potential sale.
“Over the last decade, WHSmith became a global travel retailer focused on travel.
“Agreements are not guaranteed, but we will provide updates as needed.”
According to the latest CBI growth indicator survey, WHSmith is not the only company that may be considering a reduction of headcount.
A business lobby poll found that employers expect prices to rise this year, but hiring intentions will remain low. This is due to higher costs from employer national insurance contributions as well as a raise in the living wage.
The S&P survey of purchasing managers, conducted last week, showed that UK companies are cutting jobs faster than ever before, even excluding the pandemic.
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