As the UK is shifting to flexible working, BP is reportedly planning to sell its London headquarters. The Times reported on Sunday rent back the building from the new owner before leaving permanently in two years’ time. The oil giant employs over 6,500 people in the UK and has offices in central London and Sunbury-on-Thames. The group has said that it plans to move towards a more “hybrid work style”, with a greater balance towards home working. BP purchased the headquarters in St James’s Square back in 2001 for £117m and could sell it for an estimated £300m today. Earlier this year, BP revealed plans to axe 10,000 jobs following a global slump in oil demand. “We are spending much, much more than we make – I am talking millions of dollars, every day,” said chief executive, Bernard Looney in an email to staff. The news comes as the government is set to kickstart its campaign to get people back into the office. Transport Secretary Grant Shapps told Sky News last week: “What we’re saying to people is it is now safe to go back. Your employer should have made arrangements which are appropriate to make sure it is coronavirus-safe to work. You will see some changes, if you haven’t been in for a bit, as a result.” “Clearly there are things you can’t just do remotely, and a lot of those people have carried on working. But for the rest of us, also, you just miss out on that human spark when you’re not with people. You will find the office has been reorganised into a coronavirus-avoidance friendly environment and probably a few changes as a result,” he added.    

Gatwick airport has swung into a £321m loss amid the pandemic. Due to a 66% fall in passengers for the six months ending 30 June, the UK’s second-busiest airport revenues plunged from £372m last year to £144m. As the aviation industry has taken a hit across the world, Gatwick’s numbers highlight the damage the pandemic has really caused. Passenger numbers in the first six months of 2020 were just 7.5m – compared to the 22m from the same period in 2019. According to Gatwick airport, it will take up to five years to return to normal levels. As a result, the airport announced plans to cut 600 jobs as part of a restructuring to survive the effects of the pandemic. Gatwick airport has already cut staff this year from 3,046 to 2,515. Stewart Wingate, the chief executive of Gatwick airport, said: “The negative impact of Covid-19 on our passenger numbers and air traffic at the start of the year was dramatic and, although there are small signs of recovery, it is a trend we expect to continue to see. As with any responsible company we have protected our financial resilience by significantly reducing our operational costs and capital expenditure.” Gatwick is not the only airport to have revealed a drastic drop in revenue over 2020. Heathrow airport revealed a £1bn loss for the first six months of 2020. Heathrow’s chief executive has called for a passenger testing regime. “As many of our customers have experienced, it’s difficult to plan a holiday that way, let alone run a business,” said John Holland-Kaye. “Testing offers a way to safely open up travel and trade to some of the UK’s biggest markets which currently remain closed. Our European competitors are racing ahead with passenger testing; if the UK doesn’t act soon, global Britain will be nothing more than a campaign slogan.”  

Pret has become the latest company to reveal a dramatic fall in sales amid the Coronavirus pandemic. Sales 74% compared to the same period last year due to “shorter opening hours, lower transaction levels, and the losses faced by the business in 2020”. As a result, Pret will be axing 2,800 jobs and permanently close 30 stores. “I’m gutted that we’ve had to lose so many colleagues,” said Pano Christou, the group’s chief executive. “Although we’re now starting to see a steady but slow recovery, the pandemic has taken away almost a decade of growth at Pret. “We’ve managed to protect many jobs by making changes to the way we run our shops and the hours we ask team members to work.” “I’m hopeful we’ll be able to review all these changes now that trade is improving again, and I’m encouraged by the improvements we’re seeing every week,” he added. “We’ll soon be announcing a number of big changes to help bring Pret to more people. “We’re grateful to the government for the support they’ve given our sector, and hope that support will continue as long as possible to give Pret time to adjust.” Over 24,000 jobs in total have been lost on the high street in administration in the first half of 2020 alone.

The Hut Group has revealed plans to float on the London Stock Exchange for £4.5bn. The group owns beauty and fitness brands including the Lookfantasic beauty and Myprotein. The Hut Group has grown substantially since the start of the year, with revenues rising 35.8% to £676m. Sales in 2019 grew to £1.1bn from £916m during 2018. It was founded in 2004 and now employs over 7,000 people. Matthew Moulding, founder and chief executive, said: “Our intention to float The Hut Group on the London Stock Exchange reflects the achievements of the past but also our strong belief in the significant potential for THG in the future.” “THG has enjoyed strong growth since being founded in 2004, employing more than 7,000 people and establishing a track record of consistent delivery for our customers,” he added. The company will plan to raise £920m through the sale, which could lead to a large payout of up to £700m in shares for Moulding. Shares are likely to be listed and begin trading in mid-September. Citi and JPMorgan are leading the IPO.