M&S's profits drop after ransomware attack, online shopping pause
Marks & Spencer (M&S) just saw its half-year profits drop sharply—from £413 million last year to £184 million—after a big ransomware attack over Easter.
The hack forced them to pause online orders for clothes and homeware for more than six weeks.
Still, total sales went up 22% to nearly £8 billion, with food sales rising 7.8% and largely recovering from the effects of the attack.
The attack disrupted online shopping and in-store payments
Hackers quietly exploited M&S's systems for weeks before causing chaos at one of the busiest times of year.
Online shopping was disrupted, and some in-store payment methods such as contactless payments were inaccessible.
Some customer info like names and addresses was accessed (but no payment details or passwords), so M&S reset all account passwords just to be safe.
M&S has rolled out a PS600 million cost-cutting plan
To recover from the financial blow, M&S has rolled out a £600 million cost-cutting plan—but new packaging rules and higher insurance costs are adding pressure.
This whole episode is a reminder that even big brands can get thrown off by cyberattacks, making it tough to keep business running smoothly and customers feeling secure.