John Lewis Newcastle

John Lewis has cut bonuses for more than 90,000 employees, despite posting a 24% rise in annual profits.

The John Lewis and Waitrose staff will now earn a bonus worth 10% of their annual salary. That figure was 17% in 2013, but was cut to 15% in 2014 and 11% last year.

However, staff largely reacted positively to the news on Twitter, with many expecting the bonus rate to fall into single figures.

— caragh (@caraghhxo) March 10, 2016

The cut comes as John Lewis Partnership, which includes Waitrose, reported profits of £435 million for 2015, up by nearly a quarter on 2014. However, the firm warned that excluding exceptional items saw its profits fall by almost £40m to £305.3m. The fall was driven by higher pension costs and lower property profits.

Waitrose posted a profit of £232.6m, down 2% on last year. But excluding property profits, John Lewis Partnership said profits were up 2.5%.

Sir Charlie Mayfield, chairman of John Lewis Partnership, said: "The partnership has delivered a healthy trading performance and increased market shares in challenging conditions."