ASOS to slash more than 200 jobs amid plunging sales
Online fashion retailer ASOS is proposing to cut more than 200 head office jobs. The news comes off the back of losses in the six months to March this year widening to £120 million, with sales plunging almost 20%.
However, it has been reported that the overall number of employees at the business won’t necessarily change, as more jobs are to be created in other areas as the company looks to hire more software engineers and product managers.
A message to staff, reportedly seen by The Mirror, said that the current set-up was “no longer suitable for today’s business priorities and context.” It added that the company needed “to move faster and deliver more”.
As such, ASOS has “entered into a collective consultation” with members of its technology team around a proposed restructure “to drive greater innovation and agility”.
Earlier this month TheIndustry.fashion reported that ASOS has sold a 75% stake in the Topshop and Topman brands in a new joint venture deal with Heartland A/S, an investment and holding company representing the interests of Bestseller owner and ASOS shareholder Anders Holch Povlsen.
The deal will net the retailer around £118 million in cash and the joint venture means the retailer can continue to sell the Topshop and Topman brands via its online channels.
It was also later reported that ASOS turned down a higher offer of £215.5 million for Topshop and Topman from Shein, which was bidding for the former Arcadia brands on a joint ticket with US brand house Associated Brands Group (ABG).