THG has announced significant operational changes, including job cuts and a return to office policy.
- Employees are required to be in-office five days a week starting August 19, 2024.
- Up to 171 redundancies are expected across six UK divisions, including beauty and nutrition.
- The company cites inconsistent adherence to remote work policies as a factor influencing the decision.
- THG aims to enhance efficiency through restructuring amid a reported pre-tax loss.
In a recent announcement, THG has communicated significant changes to its operational structure, impacting its workforce and workplace policies. Beginning August 19, 2024, employees are mandated to work on-site for the full workweek. Previously, there was an allowance for some remote work, which has been revoked due to what THG describes as ‘inconsistent adherence’ to flexible work policies, ultimately seen as detrimental to the business culture.
This shift comes alongside a restructuring plan that predicts up to 171 job cuts distributed across six divisions in the United Kingdom. Divisions impacted include THG’s beauty and nutrition sectors. The internal memo detailing these changes emphasizes the necessity to ‘ensure sustainable growth, profitability, and cash generation,’ aligning these strategies with operational restructuring.
In April, THG reported a significant pre-tax loss of £252 million for 2023, improving from £549.7 million the previous year. Yet, this substantial loss underscores the financial pressures prompting these decisive measures.
Employees with existing formal flexible working arrangements might still retain their conditions, although these are subject to further review. This directive overly highlights the company’s commitment to revamping its operational efficiency with technology and automation investments.
The intent to bolster efficiency comes soon after the publicized strategic alliance with Frasers Group in June, following Frasers’ acquisition of Coggles. A spokesperson from THG articulated that the objective remains to enhance service delivery to their global clientele amidst these internal shifts.
Severance plans for affected employees involve providing support and exploration of alternative roles within the organization. Despite the anticipated layoffs, THG assures that strategies are in place to absorb some of the displaced workforce.
THG is undergoing significant changes to refine its operations and address financial setbacks while focusing on sustainable growth.
