IT WAS crunch time for M&S boss Stuart Rose today as he unveiled plans to revive the retail giant.

His vision may be good news for shareholders - they would see £2.3 billion returned to them, or £1 a share cash back - but staff in some areas would bear the brunt of cost-cutting.

M&S this morning announced that 650 staff would lose their jobs as part of moves to generate annual savings of £320 million within three years.

Deals with suppliers have been renegotiated at lower costs, while the retailer has eliminated 500 food ranges and pledged to lower the number of products being marked down for sale.

Customers will notice the first changes in September when a new advertising campaign, called Your M&S, begins, and gaps in store ranges are closed, Mr Rose said.

Homewares business Lifestore, in Gateshead, will shut by the end of January and the roll-out of Simply Food stores has also been stalled.

The group will also "focus on customers" in an effort to revive falling sales across the business.

M&S said it would sell its financial services business to HSBC for £762m and that it would buy the Per Una clothing business, which made £17m profit, from George Davis for £125m.

The firm is facing a £9.1bn takeover approach from billionaire entrepreneur Philip Green.

Mr Rose must convince shareholders that his plans can deliver a share price well above the 400p Mr Green has proposed.

Mr Rose said: "Today's announcement sees us refocusing on our core retail activities with an emphasis on delivering great product for our 25 million customers.

"The business has substantial further trading potential, which will be unlocked through a return to the core values of quality, value, service, innovation and trust."