Asos takes out the scissors to grow back. British online fashion company plans to implement more than a hundred layoffs, most of them at its headquarters in Londonas part of its restructuring plan launched last month, it has made progress Retail week.
The company started layoffs yesterday and they will affect all departments. Asos currently employs around 3,300 people abroad. “Simplifying and reducing our cost structure is a key aspect of our strategy,” the British group justified.
The company closed the 2022 financial year (which ended August 31) with a loss, with figures in the red of £30.8m, compared to a net profit of £128.4m in the 2021 financial year.
Asos will make layoffs across all of its divisions, although most of them will affect the team at its London headquarters
In 2022, Asos sales rose a slight 1% to £3,936.5m. Considering the poor performance of the company, José Antonio Ramos, CEO of the company since June, launched a twelve-month plan in order to improve its profitability.
More precisely, the new strategy of Asos pass by akorshorten purchasing cycles, manage inventory more flexibly and increase full price sales. For the next exercise, Asos expects the volatile environment to continue, so “it is very difficult to predict consumer behavior”. The company says it expects sales in the UK, its home market, to decline over 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 are leaving the top management body of the company.
Asos appointed Ramos as CEO last June. The Spanish director, who until then was the commercial director of Asos, has gone through companies such as Salsa, Inditex and Esprit.