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Ecommerce company THG is set to cut 171 jobs across various divisions and has insisted that people return to the office five days a week.
The latest wave of proposed redundancies comes after the Manchester-based business has cut almost a third of its workforce over the past two years to about 7,000 following a cost-saving review.
THG, which owns websites such as Lookfantastic and Myprotein, told employees on Wednesday that it expected to make a total of 171 redundancies from 581 jobs at risk across six divisions including beauty and nutrition, according to a memo seen by the Financial Times.
The company acknowledged it was “a difficult time” for those at risk of losing their jobs.
“THG is proposing to restructure a number of business areas to ensure we remain in the best possible shape to continue to deliver sustainable growth, profitability and cash generation,” the company added.
The online retailer, previously known as The Hut Group, has had a difficult time since it listed on the London stock market at a £5.4bn valuation in 2020, with its shares falling about 90 per cent since then.
Last year it said it would focus on becoming more profitable. In April it posted an annual loss before tax of £252mn compared with a loss of £549mn the previous year, on total revenue of £2bn.
Separately, THG also said that all employees would have to be in the office five days a week from August 19, according to another memo seen by the Financial Times. Staff had been told in December there would be flexibility to work from home one day a week on a case-by-case basis from January.
THG blamed the changes on an “inconsistent adherence” to its policy, saying it was detrimental to the culture of the group and its ability to make decisions.
It added that formal flexible working agreements that were already in place would continue to apply “but [they] may be subject to review in the near future”.
One employee told the Financial Times they felt the changes were designed to “force people to leave” without “it costing the business” and they reflected a lack of trust.
THG declined to comment on the changes to flexible working.
Regarding redundancies, it said it was committed to “improving operational efficiency” and as a result it is “restructuring some business areas”.
“Subject to the ongoing consultation, these changes will probably result in a limited number of roles becoming redundant,” the company added, with some staff able to move into other roles.
The process is focused on the UK and is likely to be completed by the beginning of September.
Co-founder and chief executive Matthew Moulding wrote in April in a LinkedIn post that “two years on, we have 3,000 fewer staff, with the majority of the reduction due to a huge automation rollout . . . Sadly, not every leaver was the result of natural attrition, but most were.”
