Asos eyes redundancies at London head office
Asos is set to make job cuts following problems at its new US warehouse and slowing sales.
The Sunday Times reports that the fast fashion pureplay is consulting on around 100 redundancies (mostly in the marketing department) at its London head office. Asos did not respond to our request for comment.
It issued a trading warning in December, then reported a drop in interim profits in April. “We have identified a number of things we can do better and are taking action accordingly. We are confident of an improved performance in the second half and are not changing our guidance for the year,” said CEO Nick Beighton.
He added that global online fashion is a growing, £220 billion+ market. “We now have the tech platform, the infrastructure, a constant conversation with our growing customer base who love our own great product and the constantly evolving edit of brands we present to them. We believe that ultimately there will only be a handful of companies with truly global scale in this market. We are determined that Asos will be one of them.”
The new warehouse struggled to cope with a surge in demand. Asos said in a statement: “We acknowledge we disappointed a number of our customers and we have acted fast to rebuild their trust via targeted outreach. Looking forward, we see a substantial opportunity ahead of us in the US.”