M&S to cut 500 head-office jobs this week

British retailer Marks & Spencer will cut 500 jobs at its head office this week as its new chief executive Steve Rowe tries to halt a slump in sales, reported Sky News on Saturday.

It said M&S is to axe around 15 percent of the roles at its headquarters in Paddington, London, with more than half of the cuts affecting contractors.

Quoting sources, Sky said the cuts are likely to be announced this Thursday.

An M&S spokeswoman declined to comment on the report but added: "We said in May that organisation was an area of the business that needed further consideration and that we would update on this in the autumn."

Rowe, a 26-year M&S veteran, replaced Marc Bolland as CEO of the 132-year-old retailer in April with a remit to revive clothing and homeware, which contributes about 60 percent of profit but has seen five years of falling sales.

Long Britain's biggest clothing retailer, M&S has seen its market share eroded by rivals like Next and a push from supermarkets into clothing, while younger shoppers favour Primark and H&M's cheaper prices.