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November 2, 2022

Job losses loom at Asos as e-tailer launches strategic review

Asos has confirmed it has entered into a restructuring phase which will see a review of several job roles across the business.

By Hannah Abdulla

Responding to media speculation that jobs are at risk as the retailer conducts a review, a spokesperson for Asos told Just Style: “Simplifying and reducing our cost profile is a core part of Asos’ change agenda that was outlined at full-year results. As part of this, we have taken the tough but necessary step to outline proposals to reduce the number of roles across the business.

“We will work closely with those potentially affected to support them through the consultation process and will seek to redeploy colleagues wherever possible.”

Asos did not provide detail around how many jobs could go or in which departments.

Toward the end of last month, Asos warned it would look to cut costs across the business after posting a full-year loss and reporting a slowdown in sales growth.

Asos swung to a pre-tax loss of GBP31.9m (US$36m) from earnings of GBP177.1m a year earlier. Sales were up just 1% to GBP3.94bn.

CEO José Antonio Ramos Calamonte referred to the “incredibly challenging economic environment” in the company’s trading statement, adding: “Today, I have set out a clear change agenda to strengthen ASOS over the next 12 months and reorient our business towards the future. This includes a number of decisive, short-term operational measures to simplify the business, alongside steps to unlock longer-term sustainable growth by improving our speed to market, reinforcing our focus on fashion, strengthening our top team and leveraging data and digital developments to better engage customers.”

A week later, Flannels and Sports Direct owner Frasers Group announced it was increasing its stake to 5.1%  in Asos.

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