Gymshark to restructure and trim team despite ‘record’ year

British fitness apparel brand Gymshark, which yesterday posted a record revenue of £607.3 million for the year ending 31 July 2024, is looking to cut 296 jobs as it restructures its business. However, 168 new roles are to be created.

A Gymshark spokesperson commented: "We can confirm we have proposed a business restructure, which will place approximately 296 roles at risk of redundancy.

"However, at the same time, we will be creating 168 new roles to help drive our future growth. Therefore, our immediate priority is to help and support those at risk through this process, while seeking to offer as many of them as possible these new roles.

"We find ourselves in a time of intense macro-economic volatility. We, like so many others in the retail sector, need to be set up not only to weather these near-term storms, but also to build and grow in the future.

"We have therefore carefully reviewed our operating model and organisational structure to ensure we have the right teams and roles to support these goals."

Yesterday’s results saw the Solihull-based brand, founded by fitness enthusiast and current CEO Ben Francis, surge past the £600 million mark for the first time in its near 13-year history - with gross profit margin up 63%.

However, profit before tax took a hit at £11.9 million compared to £13.1 million for FY23, put down to Gymshark’s push to become an omnichannel business as it continues to roll out new stores – the most recent of which opened at The Kalverstraat in Amsterdam on 16 April. That swiftly followed the Gymshark store opening at Westfield London (White City) on 29 March.

Another store is to be added to the brand’s retail portfolio, which includes its flagship on London’s Regent Street and its store at Westfield Stratford, at The Trafford Centre in Manchester this summer, while a store in New York will also be opening later this year.