John Lewis cuts 200 outsourced customer service jobs
LONDON, UNITED KINGDOM — John Lewis Partnership, a British department store conglomerate, will be slashing 200 customer service jobs from its outsourcing partner Foundever.
According to reports, the cutbacks are part of John Lewis’ efforts to recalibrate its business model in response to changing consumer demands and a challenging retail environment.
The company has been on a quest to identify savings opportunities, with a goal to find an additional £600 million (US$760 million) by January 2026, on top of the £300 million (US$380 million) already identified last March.
Foundever, which has been in partnership with John Lewis for 17 years, handles a significant portion of the retailer’s customer service operations. The current workforce, exceeding 1,000 employees, will see a reduction of around 20%.
The retailer is reportedly exploring opportunities to reassign affected employees, though some may still be laid off. Additionally, it is expected that the total size of the customer service team will be restored to its pre-holiday season numbers after these adjustments.
This strategy aligns with the retailer’s refreshed turnaround plans, unveiled weeks prior, which include significant workforce adjustments and a revised redundancy policy to reduce payouts.
However, the announcement raised concerns among employees and customers alike, especially against the backdrop of recent criticisms regarding the deterioration of service quality at John Lewis.
A spokesperson for John Lewis emphasized the importance of customer service to the company, stating, “We’re constantly reviewing our model to make sure we continue to meet our customers’ needs. We’re working with Foundever to support their staff and offer alternative roles within our own business where we can.”
Foundever has also confirmed that it is entering a 45-day consultation period with affected employees, focusing on direct engagement and ensuring that service levels for John Lewis customers remain unaffected.
John Lewis Partnership and Foundever just signed a new five-year contract earlier this month, extending their business relationship. Foundever will continue its omnichannel services to John Lewis Partnership which covers voice, email, digital channels, and back-office operations.
