New jobs created at Westfield and other centres mean job losses amount to 700, according to staff magazine

The John Lewis Partnership made more than 1,800 people redundant in the year to the end of June, nearly three times the level in the previous year, as it cut costs amid a profits slump.

The scale of the cutbacks made over the past 12 months emerged in an update to employees in the staff magazine, the Gazette. John Lewis said 1,838 people had been made redundant in the past year, 289% more than in the previous 12 months.

The company said it had created new jobs, including hiring 600 staff when it opened its new Westfield store in White City. It also increased its in-house design and buying teams for own-label goods. In total there are now just over 700 fewer employees across the group than a year ago – taking the total to just over 83,000 staff.

The business, which owns a string of department stores and the Waitrose supermarket chain, is preparing to report on Thursday that it did not make any profit in the first six months of this year, compared to a £26.6m profit last year, as tough trading conditions on the high street take their toll.

The company warned of the likely profits fall in June, blaming Brexit-fuelled inflation and the extra costs of investing in IT at a time when it has been forced to cut prices because of widespread discounting by ailing competitors such as House of Fraser. It expects full-year profits to be significantly down.

Earlier this week, the Guardian revealed the department-store side of the group planned to cut about 270 more jobs, just as it changed its name to “John Lewis & Partners” to highlight ownership by its employees.

The Gazette indicated that the number could be higher, as it revealed that 350 staff are being consulted about the changes which affect back-office jobs in IT, finance and store security for its 50 department stores.

The group is also cutting costs at its head office, stopping investment in new stores, reviewing its pension arrangements and reining in marketing spending. At the same time, it intends to pump up to £500m a year into refurbishing its stores and website, as well as developing new products and services.

Sign up to the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk

Speaking last week, John Lewis department store boss Paula Nickolds said that despite the job cuts, the company was aiming to improve service in store.

“We are determined to play the long game and our ownership model means we can,” Nickolds said on a tour of John Lewis’s revamped Oxford Street store in London.

“While others are investing in drones, we are investing in people. Where others are cutting back, we are investing in the very thing that is our point of difference.”