Clarks cuts 1,200 jobs as sales fall by £100m

Clarks, one of the UK’s best-known heritage footwear brands, has slashed more than 1,200 jobs following a steep fall in sales.

The footwear retailer, which is a staple on British high streets, reported revenues of £901.3 million for the year ending 2024 - a significant drop from £994.5 million in 2023, marking a decline of nearly £100 million. In the same period, Clarks recorded a pre-tax loss of £39.2 million, mirroring the £39.8 million loss posted the previous year.

The job cuts have reduced Clarks’ workforce from 7,413 to 6,161, as the brand moves to "right size" its operations.

In a statement, the board described 2024 as a "year of transition", attributing its performance to a combination of global macroeconomic uncertainty, ongoing geopolitical conflicts and persistent inflationary pressures.

The Board said: "Externally, we were faced with challenging global market conditions.

"With a high number of major elections taking place in countries like the United States, United Kingdom, India, the European Union, and several emerging markets, businesses and consumers faced uncertainty regarding potential shifts in trade policies, regulatory frameworks and fiscal strategies.

Clarks has been operating under an interim executive committee since the resignation of former CEO Jon Ram in May 2024. Ram had held the position for two years before stepping down, and no permanent replacement has yet been named.

Looking ahead, Clarks is adopting a new strategy with efforts focused on restoring profitability in 2025.

"Significant changes have been made to the operations in the year to right size the overhead cost for the current business size, refocus the marketing approach, reposition the product assortment and set up the business for recovery and sustainable profitable growth in 2025", the Board added.