ASOS considers marketing job cuts following sales drop
Clothing retailer ASOS is consulting on around 100 redundancies at its London location - most of which would be in marketing.
After mistakes in the US, which saw it open a $40 million distribution centre that struggled to cope with demand, ASOS experienced heavy sales losses - reporting in the six months to February that its group revenue was up 14% to £1.3 billion but pre-tax profits down, before reporting a nearly 90% drop in interim pre-tax profits in March.
ASOS described this as "disappointing", and explained it in the context of discounting in the fashion industry, as well as heavy investment on their behalf.
It is now consulting on around 100 head office redundancies, and according to The Times, "most of the roles under threat are in the marketing department".
Another strategy ASOS is working on to mitigate the impact of its significant financial losses, is to make its return policies stricter and less open to manipulation.
It has experienced widespread issues with "serial returners," who buy up multiple sizes of various items before returning the vast majority, at the expense of ASOS. Some even wear the clothing for its intended event before sending it back for a full refund.