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THG division closure puts nearly 200 jobs at risk

By Nagasunder in UK Business News, posted April 6, 2023

Online retail and software giant THG has placed nearly 200 jobs under threat.

The Manchester-based company notified staff 180 positions at THG Studios may be lost on Tuesday, April 4.

THG said the decision was made as a consequence of the division's OnDemand closure.

According to BusinessLive, THG is also shuttering ProBikeKit, which it acquired in 2013.

A THG spokesperson said: "Following a strategic review of our OnDemand division, as announced in THG’s trading update of 17 January 2023, we can confirm that we are proposing to discontinue operations in the OnDemand division across all sites.

"We are currently consulting with impacted colleagues and will take steps to minimise the number of redundancies.

"We are also consulting with certain colleagues in THG Studios where, following the closure of OnDemand, we expect associated workflow to reduce proportionately.

"THG is committed to supporting all affected colleagues and, where possible, we will endeavour to find colleagues alternate roles within the wider THG Group."

At the start of the year, THG revealed it was reviewing "lossmaking categories and territories within the THG OnDemand division", which includes websites such as Zavvi and Pop in a Box.

When the decision was made, it was stated Ingenuity and its primary e-commerce businesses in nutrition and beauty would receive more attention.

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According to the FT, the review and internal reorganisation have already resulted in the loss of 2,000 positions during 2022 and will save £100 million annually.

THG stated in January that additional reductions of £30 million will be made this year.

Sales had reached record highs but THG hadissued a warning that its profits for 2022 would be lower than anticipated.

The group said it now estimates its adjusted earnings before interest, taxation, depreciation and amortisation of between £70m and £80m for the last 12 months, down from the £100m-£130m forecast in its last update in October.

Source: Business Live