Marks & Spencer confirms redundancy benefit plans

Retail giant Marks & Spencer today confirmed plans to cut back redundancy benefits for its 70,000 UK staff.

The firm is in consultation with staff representatives on its Business Involvement Group over the move, which would limit maximum payouts from 70 weeks to 52 weeks depending on length of service.

M&S, which issued a shock profit warning in June, wants to introduce the changes by the beginning of September.

A spokeswoman said M&S had not reviewed redundancy benefits since 2006 and its new terms would still be more generous than most competitors.

However, the move will heighten fears over job cuts as the group feels the brunt of a consumer spending squeeze, although the spokeswoman did not comment on possible redundancies.