The latest annual results from the John Lewis Partnership have exposed a widening contrast between rising executive pay and a declining workforce, raising questions about balance at the employee-owned retailer as it continues its restructuring drive.
Jason Tarry, who became chairman in September 2024, saw his base salary increase from £990,000 to £1.2 million for the year ending January, a rise of just over 20 percent. Including a small bonus and benefits, his total pay package reached about £1.26 million.
The company said the increase reflects Tarry’s expanded responsibilities after taking on combined chairman and chief executive duties following leadership changes that removed a senior role previously held by Nish Kankiwala.
His pay remains below earlier leadership highs, including former chairman Charlie Mayfield, who earned £1.53 million in 2015, and the nearly £2 million package reported at the Co-operative Group last year. The overall cost of senior management stayed steady at around £8 million after the number of top roles was reduced.
While executive pay has drawn attention, staffing levels within the business have continued to fall. The partnership employed 65,700 people at the end of the year, down from 69,000 a year earlier. Cuts were recorded across both major arms of the business, with around 1,800 roles lost at Waitrose and about 1,500 at John Lewis & Partners.
A company spokesperson said most departures were due to natural turnover, with fewer than 0.5 percent resulting from redundancies. Even so, the longer-term trend is more pronounced. The workforce has fallen from 76,400 in 2023, meaning roughly 10,700 jobs have been lost over three years.
The reductions align with previously signalled restructuring plans that included potential cuts of up to 11,000 roles by 2029. The group has also been investing in efficiency measures such as electronic shelf labels and expanded use of artificial intelligence, though it has not confirmed whether further job losses are planned.
Despite the cuts, the partnership reported improved financial performance, with underlying profits rising 6 percent. For the first time in four years, staff received an annual bonus, worth 2 percent of salary across the organisation.
Tarry’s leadership has focused on strengthening core retail operations, including store refurbishments, improved product availability and investment in physical locations. The company is spending £800 million across its estate and has completed upgrades to dozens of branches.
The department store chain has also attempted to revive customer interest with the return of familiar branding and new product ranges, including renewed attention around high-street fashion labels.
However, the business has faced reputational challenges, including criticism over staff dismissals in high-profile cases that attracted public attention and prompted external job offers for affected workers.
As an employee-owned organisation, the challenge for the John Lewis Partnership remains balancing financial performance and executive compensation with its founding principle of shared ownership. With staffing levels falling and leadership pay rising, the tension between efficiency and employee participation is likely to remain under scrutiny.
