Amid rising losses, Asos plans to streamline its head office workforce, significantly impacting around 200 roles.
- The retailer aims to simplify its organization to return to profitability, as noted by The Mirror.
- Consultations have commenced, targeting positions in business analysis, engineering management, and platform leadership.
- Despite the cuts, Asos seeks to balance its workforce by creating new roles in product management and software engineering.
- CEO José Antonio Ramos Calamonte emphasizes the need for Asos to become faster and more agile for future growth.
Asos, the prominent fashion retailer, is embarking on an ambitious restructuring process to address its financial losses. Reports indicate that the company is set to cut over 200 positions at its head office, as it navigates through a challenging economic landscape. According to The Mirror, the initiative is a part of Asos’s strategy to ‘simplify the organization’ and pivot towards profitability.
The company has initiated consultations regarding the impending job cuts, which particularly affect roles in business analysis, engineering management, and platform leadership. Despite these reductions, Asos has articulated a vision to replace some of these positions by establishing new roles in product management and software engineering. This approach underscores the company’s commitment to enhancing its operational capabilities while realigning with its strategic objectives.
A statement from Asos highlights that the overall number of employees will remain unchanged, emphasizing the objective of modifying roles to bolster the customer experience. This restructuring aligns with the sentiment conveyed in a message to the staff, acknowledging that the current operational framework ‘is no longer suitable for today’s business priorities and context.’ The message underscored a pressing need for the retailer to ‘move faster and deliver more,’ illustrating a clear shift towards a more responsive and dynamic operational model.
In an insightful comment, CEO José Antonio Ramos Calamonte described the restructuring as essential for Asos’s transformation into a ‘faster and more agile business.’ He reaffirmed the company’s guidance for achieving sustainably profitable growth by the full year of 2025 and beyond. This strategic move is crucial for Asos as it attempts to mitigate a reported £120 million loss in the first half of the year, incurred amid its ongoing turnaround plan.
Asos’s restructuring signifies a pivotal step towards stabilizing and optimizing its operations for future growth.
