The digital fashion giant, Boohoo, is reportedly planning to reduce its workforce at its London office located in Soho. This decision aligns with the company’s aim to enhance its operational performance, as stated in its half-year trading update on September 28. Reports suggest that over 100 positions are at risk, with the most affected departments being e-commerce, buying, and design. Boohoo has started a consultation phase, but the final number of job cuts is yet to be determined.

The potential redundancies are likely a result of Boohoo’s efforts to consolidate its operations. Starting from February 20, teams from brands acquired by Boohoo last year, such as Burton, Coast, Dorothy Perkins, Karen Millen, Oasis, and Wallis, will be integrated under the umbrella. In January 2021, Boohoo acquired Debenhams for £55 million and also purchased the online business and intellectual property of Oasis and Warehouse for £5.25 million. The company has expressed its commitment to its portfolio and believes that all brands play a significant role in its ongoing success.

Boohoo’s decision to reduce its workforce comes as the company faces challenges due to weaker sales following the pandemic. Although Boohoo witnessed a surge in online shopping during the lockdown and the immediate post-pandemic period, its recent performance has declined, leading to a significant drop in its share price. Despite these obstacles, Boohoo remains optimistic about the future and believes it can capitalize on the growth potential of its brands.

Useful links:
1. Boohoo Official Website
2. Reuters