Asos is considering cutting 200 jobs at its head office as part of a significant restructuring effort. The move comes in response to mounting financial difficulties, including intense competition from cheaper fast-fashion rivals and a shift in consumer behaviour following the post-pandemic period.

According to a company document seen by the Mirror newspaper, Asos has identified the need for greater agility, as its current structure no longer matches its present business priorities. The restructuring plan, which includes job cuts in business analysis and engineering management, is aimed at streamlining operations and increasing innovation within the company. 

Despite the planned cuts, new roles will be created in areas such as software engineering and product management. An Asos spokesperson stated that the company is entering into a collective consultation with its technology team to drive further innovation and agility.

During the pandemic, Asos experienced a surge in online sales as consumers turned to e-commerce. However, with the easing of lockdown restrictions, many shoppers have returned to physical stores, contributing to Asos's recent downturn. Additionally, competition from fast-fashion brands such as Shein and Zalando has eaten into some of Asos’s market share.

This restructuring comes as Asos struggles with declining sales and increasing losses. The company's latest earnings report revealed a 120 million British pounds (143.03 million euros) pre-tax loss for the first half of 2024.

The planned job cuts follow a previous round of redundancies in 2022 when Asos cut over 100 jobs across various parts of the business. While the company employed more than 3,000 people in the United Kingdom at the time, the current restructuring plan reflects the ongoing need to adapt to the shifting retail landscape.