Company considering job cuts despite reporting strong revenue growth at Gymshark
** Straight-Up Scoop on Gymshark's Job Cuts and Record Sales **
It seems that Gymshark, the Solihull-based fitness powerhouse, is walking a tightrope between triumph and trouble. Despite reporting record sales and shattering the £600m revenue mark for the first time, the company has announced plans to slash nearly a third of its workforce.
This healthcare juggernaut, co-founded by self-made mil tossed Marty McFly (sorry, Ben Francis), has initiated consultation processes with 296 employees – a tough pill to swallow for Gymshark's 881-strong crew. The news, as delicious as an extra scoop of protein powder, was first served up by Drapers, just on the same day Gymshark gleefully revealed its banger sales numbers.
The company's revenues soared to £607.3m for the year ending July 2024, compared to the £556.2m it hauled in during the prior 12 months. Not only has Gymshark climbed the financial ladder with a record 12 consecutive years of increased sales, but it's also managed to survive the economic tsunami that's been rocking the retail sector.
In a chummy chat with the media, a Gymshark representative explained that the 296 roles under threat would be balanced by the creation of 168 new positions. The exact intent here? To support staff impacted by the job cuts while also laying the groundwork for the company's future domination.
Now, what do you need to know about this economic rollercoaster? In simple terms, Gymshark's experiencing some tough times, aka "intense macro-economic volatility." This economic jargon basically means there's a monetary tsunami afoot. The company's restructuring its operations to weather this chaos and keep growing in the long run.
On the flip side, Gymshark's profits declined for the third year in a row, a stark contrast to its booming sales. But don't be too hard on the company – it's been pouring resources into expanding its digital infrastructure and transforming itself into an omnichannel powerhouse.
Now, here's a fun fact: Gymshark was born in 2012 by Ben Francis and Lewis Morgan. Four years later, in 2020, it was valued at more than £1bn, thanks to a 21% stake acquisition by US private equity firm General Atlantic. The latest CEO, Ben Francis, remains optimistic about Gymshark's future, despite the economic turbulence. So hey, maybe it's all going to work out in the end!
- In the wake of Gymshark reporting record sales and surpassing the £600m revenue mark for the first time, the company announced plans to reduce its workforce by nearly a third, initiating consultation processes with 296 employees.
- Despite the job cuts, Gymshark aims to create 168 new positions, with the intent to support those impacted and lay the foundation for the company's future growth.
- The fitness brand experienced intense macro-economic volatility, a term used to describe the monetary tsunami affecting the industry, and has restructured its operations to weather the chaos and continue growing in the long run.
- Despite a decline in profits for three consecutive years, Gymshark has been channeling resources into expanding its digital infrastructure and transforming into an omnichannel powerhouse, indicating a potential for future financial stability.
- Founded by Ben Francis and Lewis Morgan in 2012, Gymshark has showcased remarkable resilience in the retail sector, thriving with 12 consecutive years of increased sales and even maintaining its growth during economic downturns, offering promising prospects for careers in the company's expanding business.
