By Chloe Mills
24 September 2024
Asos is set to axe hundreds of jobs at its head office amid mounting losses at the online fashion giant as it attempts to return to profitability, according to reports.
More than 200 jobs are at risk of being cut at as Asos faces a shake-up that is looking at “simplifying the organisation” and returning the business to profit, as reported by The Mirror.
It is understood that a consultation period has begun and that business analysts, engineering managers and platform leads among others at the business are at risk.
In a message sent to staff and seen by the newspaper, Asos said its current setup was “no longer suitable for today’s business priorities and context.” It also said: “We need to move faster and deliver more.”
Asos has also reportedly proposed creating additional roles and said it wants to hire more software engineers and product managers at the business.
Asos said in a statement: “We’ve entered into a collective consultation with members of our technology team around a proposed restructure to drive greater innovation and agility. It would be inappropriate to comment further while the consultation is ongoing.”
Retail Week has contacted Asos for comment.
This follows news earlier this month that Asos has sold a majority stake in the Topshop and Topman brands to a holding company of Danish fashion giant Bestseller.
As part of the joint venture, Asos has retained 25% and Heartland will hold a 75% interest in the venture in a deal worth £135m.
Asos also updated on its current trading performance and said it expects full-year adjusted EBITDA to hit the top end of estimates despite sales being anticipated to fall slightly below the previously pledged guidance.
The update comes as Asos remains focused on its ‘back to fashion’ strategy after a turbulent time of deepening losses and declining revenue.
Speaking earlier this month, Asos boss José Antonio Ramos Calamonte called the beginning of the year a period of “transformation” for the business and said he believes “with a lot of optimism” that the changes being made at the business are “generating the right output”.
Asos is set to axe hundreds of jobs at its head office amid mounting losses at the online fashion giant as it attempts to return to profitability, according to reports.
More than 200 jobs are at risk of being cut at as Asos faces a shake-up that is looking at “simplifying the organisation” and returning the business to profit, as reported by The Mirror.
It is understood that a consultation period has begun and that business analysts, engineering managers and platform leads among others at the business are at risk.
In a message sent to staff and seen by the newspaper, Asos said its current setup was “no longer suitable for today’s business priorities and context.” It also said: “We need to move faster and deliver more.”
Asos has also reportedly proposed creating additional roles and said it wants to hire more software engineers and product managers at the business.
Asos said in a statement: “We’ve entered into a collective consultation with members of our technology team around a proposed restructure to drive greater innovation and agility. It would be inappropriate to comment further while the consultation is ongoing.”
Retail Week has contacted Asos for comment.
This follows news earlier this month that Asos has sold a majority stake in the Topshop and Topman brands to a holding company of Danish fashion giant Bestseller.
As part of the joint venture, Asos has retained 25% and Heartland will hold a 75% interest in the venture in a deal worth £135m.
Asos also updated on its current trading performance and said it expects full-year adjusted EBITDA to hit the top end of estimates despite sales being anticipated to fall slightly below the previously pledged guidance.
The update comes as Asos remains focused on its ‘back to fashion’ strategy after a turbulent time of deepening losses and declining revenue.
Speaking earlier this month, Asos boss José Antonio Ramos Calamonte called the beginning of the year a period of “transformation” for the business and said he believes “with a lot of optimism” that the changes being made at the business are “generating the right output”.
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