๐ Head Office Job Cuts
Asos is set to cut over 200 head office jobs as it works to "simplify the organization" and improve profitability. The retailer began consultations on September 25, 2024, with roles like business analysts, engineering managers, and platform leads among those at risk. The retailer emphasized that the restructuring aims to align with new business priorities.
๐ Tech Team Restructuring
The tech team at Asos is particularly affected by the restructuring. However, the company plans to create new roles, particularly for product managers and software engineers. Asos mentioned that the overall headcount would remain the same, with a shift in capabilities to enhance customer experience. The restructuring reflects a push to move faster and deliver more in line with today's business needs.
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Financial Pressures
Asos reported a $120M loss in the first half of 2024, with declining sales as it tries to execute a turnaround plan. CEO Josรฉ Antonio Ramos Calamonte highlighted the need for speed and agility in operations, reiterating that the restructuring will pave the way for sustainable growth by 2025. The job cuts are part of a broader effort to streamline operations and return to profitability.
๐๏ธ Topshop Sale
In a related move, Asos recently sold a 75% stake in Topshop, the iconic British fashion brand, just three years after acquiring it. This decision is part of a broader strategy to refocus on core business areas and manage losses. The sale and restructuring efforts underscore the retailer's urgent need to stabilize its financial situation and regain market confidence.
Is Asos making the right move by restructuring now?
