Gymshark to axe 296 roles after record profits

Gymshark has announced plans to cut 296 jobs following its recent restructuring, despite reporting record revenues of £607.3 million for the year ending 31 July 2024. The decision to reduce the workforce comes amid intense macro-economic volatility, with the company aiming to streamline its operations and create a more efficient organizational structure. 1. **Job Cuts Amid Economic Uncertainty**: Gymshark is facing intense macro-economic volatility, which is forcing the company to make difficult decisions regarding its workforce. Despite reporting record sales, the company is looking to cut 296 roles as part of its restructuring efforts. 2. **New Roles to Drive Future Growth**: While eliminating certain positions, Gymshark is also creating 168 new roles to help drive future growth. This move aligns with the company's strategy to build and grow in the future, despite the current economic challenges. 3. **Impact on Workforce and Operations**: The job cuts represent nearly a quarter of Gymshark's total workforce of 1,100, which is a significant impact on the employees affected. The company is prioritizing support for these employees during the transition and is seeking to offer as many of them as possible the new roles being created. 4. **Financial Performance and Profitability**: Gymshark's financial performance has been mixed, with record revenues but a decline in profit before tax to £11.9 million compared to £13.1 million in the previous year. This decline in profitability could be a factor in the company's decision to streamline its operations and reduce costs, including workforce. In conclusion, Gymshark's decision to cut 296 jobs is a strategic move to adapt to the current economic climate and secure the company's long-term viability. While it represents a significant challenge for the affected employees, the company is taking steps to minimize the impact and position itself for future growth.