TROUBLED high-street chain Marks & Spencer is to cut up to 4,390 jobs in a bid to revive its fortunes.

The retailer, which has fallen dramatically from grace during the past two years, is closing its 38 mainland European stores and selling its two US subsidiaries.

Chairman and chief executive Luc Vandevelde said he wanted to concentrate on the core M&S business in the UK, where customers have been promised improved clothing ranges and wider choices in food and home and beauty products.

The loss-making Direct catalogue business in the UK, which employs 690 people, is also being shut.

More than 3,350 jobs would go in Europe, while as many as 1,040 could be lost in the UK.

A spokeswoman said M&S hoped to redeploy up to 300 people in the UK. The retailer said it would return £2bn to shareholders after the restructuring.

More than £1.3bn would come from releasing value in the M&S property portfolio, possibly through sale and leaseback deals.

Mr Vandevelde, who joined M&S in February last year, said: "These changes put in place a clear, thorough and urgent plan for recovery based on the UK business.

"By creating a simpler, more focused organisation we will be able to get on with what we do best, to be better positioned to deliver faster recovery, and, in time, seize new opportunities both in the UK and abroad."

It would be three years before the full benefits of the restructuring were seen, Mr Vandevelde said.

But he stuck by his promise that there would be signs of a recovery in the group next year.

Mr Vandevelde said last May that he would resign if M&S was not showing signs of improvement within two years.

The move to restructure the business comes just three months after Roger Holmes started his job as managing director at M&S. He was recruited from Kingfisher last year.

Mr Vandevelde said the time was now right for such a radical move as he had "the right team in place". "It's easy in hindsight to say yes, I would have done better to do this then, but it does take time to understand the strengths and weaknesses of the business."

M&S customers have been promised a revamped clothing range, with "sharper pricing".

This autumn will also see the launch of a sub-brand designed by George Davis, who masterminded the success of the George clothing range at the Asda supermarket chain.

The retailer is also looking at launching more food-only stores, aimed at commuters, and plans to open beauty shops in more than 50 of its 180 stores, and coffee shops in a further 30.

Food sales have shot up by eight per cent in the past nine weeks, while home and beauty sales have increased by 9.1 per cent. But clothing has continued to slide, dropping by 6.5 per cent.

Mr Vandevelde said he expected to be able to sell M&S' two US subsidiaries, Kings Super Markets and Brooks Brothers, with little problem.

M&S would retain a presence in 30 countries around the world, including Hong Kong, through franchisees.

Mr Vandevelde said Direct was losing £25m a year, as was M&S' European business.

Richard Hyman, chairman at retail consultancy Verdict Research, said the M&S move was "bold, courageous and positive".

He said: "I think they have got to bite the bullet. It's sad to see jobs go, and it's sad to see them withdraw from international side, but all along, the UK has been the be-all and end- all.

"It's womenswear. They have to get that right, no matter what the rest of the business does."