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ASOS set for jobs cull at London head office – reports

ASOS is looking to keep a lid on its costs as it recovers from a near-90% plunge in profits in the first half of its financial year

asos head office
Most of the redundancies are reportedly set to come from the marketing department

ASOS plc (LON:ASC) is reportedly set to slash around 100 jobs from its London head office following its recent slump in sales and profits.

According to the Sunday Times, the online clothes retailer for twentysomethings is consulting on the redundancies, most of which are expected to come from the marketing department.

The move follows a tricky year for ASOS, during which its share price has more than halved.

READ: ASOS shares tumble as UBS removes ‘buy’ recommendation amid US fears

The company, which is one of the biggest on London’s AIM market, issued a profit warning back in December after experiencing a “significant deterioration” in trading in the run up to Christmas.

Even with a slight pick-up in trading over the holiday period and into the New Year, ASOS still reported a near-90% drop in half-year profits in March.

ASOS’s bid to crack the huge and potentially lucrative US market has also been met with troubles.

Earlier this year, the retailer opened a new distribution centre in Atlanta, but there wasn’t enough staff to cope with the demand, which was much greater than bosses had expected.

As well as the jobs cuts, ASOS is also looking to slash its costs by cracking down on serial returners.

Back in April, the company began deactivating the accounts of customers it suspected were repeatedly abusing its free returns policy.

ASOS shares were down 1.3% to 2,574p on Monday morning, valuing the company at £2.2bn.

Quick facts: ASOS PLC

Price: 2996 GBX

AIM:ASC
Market: AIM
Market Cap: £2.99 billion
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