Asos has announced plans to axe over 100 roles after recording poor financial results for the year.

The news, first reported by Retail Week, comes after the company revealed losses of £39 million in 2022.

The online fashion brand was also forced to write up around £130 million of stock.

Pre-tax figures were down by 118 per cent from the £177 million profit recorded in 2021.

The company's chief executive, José Antonio Ramos Calamonte, said that the Asos needs to improve the way it operates, describing the business as too capital intensive, complex, and overstretched globally.

Calamonte added that the company was disappointed with its international performance in the US, France, and Germany, particularly given the extent of its investment in North America.

Over the past few years, Asos has become increasingly reliant on the use of markdowns and promotions to attract customers, which has resulted in the decline of gross margins.

“Simplifying and reducing our cost profile is a core part of ASOS’ change agenda that was outlined at full-year results,” an Asos spokesperson told Retail Systems. “As part of this, we have taken the tough but necessary step to outline proposals to reduce the number of roles across the business. We will work closely with those potentially affected to support them through the consultation process and will seek to redeploy colleagues wherever possible.”

Share Story: