Boohoo Group will cut 200 jobs in a redundancy program as the company cuts spending.
According to reports, the fashion retailer has begun a consultation process with affected employees and plans to redundancy at its Manchester UK headquarters.
The group’s losses dropped by a considerable amount in the six-month period ending August, to PS147.3m.
Its operating costs in the same period were PS300m. This is PS128m lower than it was two years ago. This can be attributed to a 37% drop in administrative costs, a 33% decrease in distribution costs, and a 14% reduction in marketing costs.
In a video sent earlier this week, he said that he has already saved PS30m over the last four weeks. He added that there will be tens more millions of savings to come.
Jobs at risk include positions in brands such as Boohoo, PrettyLittleThing and others. The cuts will also impact the buying, merchandise design, marketing and analytics teams.
The employees who will be affected are expected to range from new recruits to those who have been with the company for over 10 years.
Boohoo, just three years ago in August 2021 announced that it would create 5,000 jobs over the next five-year period in the UK following an increase in online sales during the pandemic locksdowns.
Boohoo shareholders will vote next Friday, 20 December on whether Sport Direct owner Mike Ashley or restructuring expert Mike Lennon are to be appointed as directors.
Ashley warned shareholders against a fire sale, while Boohoo replied with a request that they reject the proposals.
Boohoo was contacted to get a comment.
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