M&S to cut 500 head-office jobs next week -Sky

(Adds M&S statement)

LONDON, Sept 3 (Reuters) - British retailer Marks & Spencer (Frankfurt: 534418 - news) will cut 500 jobs at its head office next week as its new chief executive Steve Rowe tries to halt a slump in sales, Sky News reported 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 (Frankfurt: 893517 - news) said the cuts are likely to be announced next 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 (Frankfurt: 779551 - news) and a push from supermarkets into clothing, while younger shoppers favour Primark and H&M's cheaper prices.

(Reporting by Stephen Addison; Editing by Jon Boyle)