THG, the digital retail and technology group, is planning to reduce its workforce in marketing, sales, and warehouse departments as part of its ongoing automation efforts in its UK warehouses. It is estimated that approximately 160 jobs will be affected, with around 100 positions expected to be cut at the company’s Warrington facility. In addition, about 60 marketing and sales roles will also be eliminated. THG has initiated a consultation period on job cuts at its e-commerce services platform, Ingenuity, which will continue until mid-March.

In an internal email obtained by the Warrington Guardian, THG informed its employees at the Omega site about the potential job cuts. The current proposal aims to make approximately 100 employees redundant out of the total 688 employees at risk. According to a spokesperson for THG, the job cuts at Ingenuity are part of the company’s efforts to review operational efficiency and align with its strategic shift towards larger enterprise clients. The spokesperson acknowledged that these changes might result in redundancies but assured that THG would explore redeployment opportunities within the company to support affected employees.

It is interesting to note that these job cuts come at a time when THG has reported its strongest quarter of the year. Sales for the golden quarter increased by 1.1% to reach £597.9 million, with the beauty division, including Cult Beauty and Perricone MD, contributing significantly to this growth, generating £387 million in sales.

Although THG’s decision to cut jobs may appear contradictory in light of its recent sales success, it underscores the company’s commitment to streamlining operations and embracing automation. As the digital retail landscape continues to evolve, businesses like THG are focused on leveraging technology to improve efficiency and drive growth. By automating its warehouses, THG aims to optimize processes and better serve larger enterprise clients.

Despite the unfortunate nature of these job cuts, it is encouraging that THG is taking steps to support affected employees. By exploring redeployment opportunities within the company, THG aims to minimize the impact on its workforce and ensure continued growth and success.

Overall, THG’s decision to cut jobs in its marketing, sales, and warehouse teams reflects its strategic efforts to adapt to the changing retail landscape and embrace automation. Although challenging, these changes are necessary for THG’s long-term growth and competitiveness in the digital retail market.

Useful links (only when applicable):
THG official website
The Guardian article on THG’s redundancy claims