Asos prepares more than a hundred layoffs in its offices to recover profitability

Thank you for reading this post, don't forget to subscribe!

Asos takes out the scissors to grow back. The British online fashion company plans to carry out more than a hundred redundancies, most of them at its London headquartersas part of its restructuring plan launched last month, has advanced Retail Week.

The company started rolling out the layoffs yesterday and they will affect all departments. Asos currently employs around 3,300 people internationally. “Simplifying and reducing our cost structure is a key aspect of our strategy”, justified the British group.

The company closed the year 2022 (ended on August 31) in losseswith red numbers of 30.8 million pounds, compared to net profit of 128.4 million pounds for the year 2021.

In 2022, Asos sales rose a slight 1% to £3,936.5 million. Given the poor performance of the company, José Antonio Ramos, CEO of the company since June, has launched a twelve-month plan in order to improve its profitability.

Specifically, the new strategy of Asos pass by acorshorten purchasing cycles, manage stock more flexibly, and increase full-price sales. For the next exercise, Asos expects volatile environment to continue, so “it is very difficult to predict consumer behavior.” The company indicates that, in the United Kingdom, its local market, it expects sales to decline in the next twelve months.

As part of the company’s internal restructuring, Asos has made changes to its board of directors. In the coming months, Luke Jensen and Eugenia Ulasewicz will leave the highest governing body of the company.

Asos named Ramos CEO last June. The Spanish director, who until then was commercial director of Asos, has passed through companies such as Salsa, Inditex and Esprit.

Related Articles

Back to top button