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Asos leadership team will reportedly no longer need to hit diversity targets as part of the criteria to achieve annual bonuses, according to The Telegraph.
The outlet revealed that Asos has decided to prioritise financial targets as the embattled online retailer focuses on improving its share price and profit margins.
Previously, the bonus scheme had included requirements to improve the diversity of the company by handing female and ethnic minorities more leadership roles.
Asos told the paper it had made the decision because its turnaround strategy was “what management will be focused on delivering for the year ahead”.
Earlier this year, Asos announced a statutory loss-before-tax of £296.7m for the year ended 3 September 2023 down from a loss before tax of £31.9m in 2022.
The performance comes as Asos revealed it anticipates a second year of falling sales, forecasting a decline of 5% to 15% in FY24.
The embattled online retailer reported an adjusted loss before tax of £70.3m for the year down from a profit of £22m in FY22. Alongside this, the company’s adjusted EBITDA dropped nearly 60% from £183.9m last year down to £124.5m.
The company also saw its revenues drop 11% to £3.5bn down from £3.9bn in the same period last year.
Despite this, the year was in line with Asos’ previous guidance and the company stated that its adjusted EBIT for the second half of the year was up 100%.
