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Asos could reportedly axe over 200 jobs at its head office as it mulls a restructuring amid recent heavy losses at the company. According to The Mirror, head office employees now face job losses as the company is looking to streamline the business in a bid to return to profit.
Asos confirmed that a consultation on the proposed job losses has begun with members of its technology team.
A message to staff, seen by the Mirror, stated the current company structure was “no longer suitable for today’s business priorities and context”, adding that the group needs to “move faster and deliver more”.
As well as axing roles, Asos has proposed creating roles elsewhere, and reportedly wants to hire more software engineers and product managers.
In a statement to Retail Sector, the company said: “We’ve entered into a collective consultation with members of our technology team around a proposed restructure to drive greater innovation and agility.
“The restructure will not change our overall number of employees but will ensure we have the right roles and capability to develop the most exciting experience for our customers. It would be inappropriate to comment further while the consultation is ongoing.”
Earlier this year, Asos saw its half-year losses deepen to £120m, a 32.6% increase compared to the same period last year, as sales fell by 18% to £1.5bn over the period.
The dip in sales was attributed to planned discounting to clear old stock, a move that forms part of the group’s ongoing turnaround plan.
For the rest of the year, the brand said it expects a further decline of sales of 5% to 15% but a return to growth in the final quarter of FY24.
Earlier this month, Asos confirmed it has also offloaded ownership of the Topshop and Topman brands amid a refinancing of the business, after forming a joint venture with investment company Heartland.
Following the move, Heartland will acquire a 75% stake in the brands for a total of £135m, and the remaining 25% stake will be owned by Asos. Topshop.com is also set to re-launch after the deal is complete.
