Online fashion retailer Asos has announced plans to slash more than 200 jobs at its head office as the company grapples with widening losses and plummeting sales.

The proposed cuts, primarily affecting the technology team, are part of a broader restructuring effort aimed at "simplifying the organisation" and returning the business to profitability.

A consultation process has begun, with business analysts, engineering managers, and platform leads among those at risk of redundancy. The move comes as Asos attempts to streamline its operations and adapt to changing market conditions.

In a message to staff, seen by The Mirror, the company stated that its current structure was "no longer suitable for today's business priorities and context". The communication emphasised the need to "move faster and deliver more".

José Antonio Ramos Calamonte, chief executive officer of Asos, commented on the restructuring: "We need to ensure we have the right roles and capability to develop the most exciting experience for our customers."

The job cuts follow a challenging period for the online fashion giant. In April, Asos reported that losses had widened to £120 million in its half-year results, with sales declining by nearly 20 per cent. The company's share price has plummeted more than 90 per cent since 2021, reflecting the difficulties faced in the post-pandemic retail landscape.

Despite the proposed job losses, Asos has indicated its intention to create new roles, particularly in software engineering and product management. The retailer stated that the restructure "will not change our overall number of employees".

This latest round of cuts comes after Asos eliminated more than 100 positions across various departments in 2022. At that time, the company employed over 3,000 people in the UK.

The fashion retailer, which thrived during the Covid-19 lockdowns, has struggled to maintain its momentum as consumers return to physical stores and competition intensifies in the online retail space.

In a separate development, Asos recently agreed to sell a 75 per cent stake in the Topshop and Topman brands to Heartland, a Danish investment company owned by billionaire Anders Holch Povlsen. The deal comes just two years after Asos acquired these brands, along with Miss Selfridge and HIIT, from Philip Green's collapsed Arcadia group for £265 million.

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