Boohoo Group is expected to axe 200 jobs as part of a redundancy programme as it cuts back on spending across the company.
The fashion retailer plans to make the redundancies at its Manchester UK head office and has entered a consultation with the affected workers, according to reports.
New chief executive Dan Finley implemented a cost-cutting drive following a significant reduction in the group’s losses, which dropped to £147.3m in the six months to the end of August.
In the same period, its operating costs were £300m, £128m less than two years ago, attributed to a drop of 37% in administrative expenses, 33% in distribution costs and 14% in its marketing spend.
In a video message earlier this week, he announced that he had executed £30m in cost savings in the past four weeks, with tens of millions more to follow.
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The jobs at risk include positions across brands including Boohoo and PrettyLittleThing, while the cuts will impact its buying, merchandise, design, marketing, analytics and technology teams.
Employees expected to be affected by the redundancies range from those recruited this year to people who have worked for the company for more than 10 years.
Just three years ago, in August 2021, Boohoo announced it would be creating 5,000 jobs in the UK over the next five years following a boom in online sales and revenue during the pandemic lockdowns.
Next Friday (20 December), Boohoo’s shareholders are set to vote on whether Sport Direct’s owner Mike Ashley and restructuring expert Mike Lennon should be appointed directors.
Ashley wrote to shareholders warning them against a “fire sale”, while Boohoo responded with a letter asking for them to reject the proposals.
Boohoo has been contacted for comment.
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