By Alessandro Carrara
Boohoo is reportedly in a consultation phase on the exact number of redundancies it will make
Boohoo acquired Arcadia Group in 2021
Boohoo will reportedly cut more than 100 jobs at its London office.
The redundancies are aimed at the fast fashion retailer’s e-commerce, buying and design departments based in Soho.
A final decision on the exact number of job cuts has not been confirmed, but the group is said to be in a consultation phase.
“To ensure long term, sustainable growth of our brands we have taken the difficult but necessary decision to consider a proposal to reduce the number of roles in specific areas of the business,” a spokesperson for Boohoo told Cosmetics Business
“Our people teams will be supporting those potentially affected.”
“We are committed to our portfolio and believe that all of our brands have a significant role in the ongoing success of the group and are maximising their individual potential for growth,” they added.
The job losses follow a challenging period for the retailer, after reporting a 10% slump in revenues to £882m for the six months ended 31 August 2022
Softened demand during Q2, in addition to increased returns rate, impacted the group’s half-year results. Gross profit also declined by 13% to £464m.
Despite the financial setback, Boohoo has continued to expand its growing beauty empire.
In August 2022 it made a “strategic investment” into UK beauty retailer Revolution Beauty
, doubling its shareholding in the company to 7.1%.
Boohoo said at the time that the investment built on its existing partnership with the beauty business.
The deal followed on from Boohoo’s debut cosmetics collection, which launched in February 2022.
The 50-strong line includes a 36-shade eyeshadow palette and Liquid Blush, as well as a range of setting sprays, differing in finish from matte to dewy to glowy finishes.