Asos plans to cut over 200 head office roles as it restructures its tech team. This decision is aimed at simplifying its organisation and tackling rising financial losses.
- Employing a new strategy to move faster, Asos is undergoing a consultation to manage impacted roles while aligning with business priorities.
- The restructuring is intended to maintain the overall employee count but shift focus towards more product manager and software engineering positions.
- Reports indicate that Asos, amidst widening losses, is striving for profitable growth by 2025 and beyond, with CEO José Antonio Ramos Calamonte reinforcing this initiative.
- A message to staff highlighted the need to adapt to evolving business contexts to deliver an optimal customer experience.
Asos is set to undertake significant corporate restructuring, targeting the reduction of more than 200 head office positions as part of its broader goal to streamline operations. This strategic measure is a response to escalating financial losses faced by the retailer, necessitating immediate action to stabilise and return to profitability. According to The Mirror, the company’s efforts to simplify its organisational structure form a core part of this plan.
The ongoing consultation process will determine the final impact on roles, with business analysts, engineering managers, and platform leads notably affected. However, Asos is simultaneously proposing the creation of new positions, focusing on employing more product managers and software engineers. This shift aims to retain the overall number of employees while adapting roles to better suit evolving business needs.
In a statement to Retail Gazette, Asos conveyed that the restructuring would not alter its total employee count but is designed to cultivate the right capabilities for enhancing customer experiences. A message circulated internally, obtained by a newspaper, acknowledged that the current operational framework no longer aligns with present-day business exigencies.
Asos has faced challenges head-on, with its losses widening to £120 million in its half-year report, attributed to declining sales amidst a turnaround strategy. CEO José Antonio Ramos Calamonte remarked on the retailer’s transition towards becoming a swifter and more adaptable business. He expressed confidence in the company’s strategic direction, reiterating the goal of achieving sustainable, profitable growth by the fiscal year 2025.
The communication to the staff underscored the imperative of agility in a rapidly transforming market landscape, emphasising the need for speed and enhanced delivery to customers. This assertion reflects Asos’s commitment to laying robust foundations for future success.
Asos’s strategic restructuring reflects its dedication to navigating current challenges and positioning itself for long-term profitability and growth.
