Struggling gym apparel company, brainchild of the U.K.'s youngest tycoon, announces layoff of 300 employees amidst international economic turbulence.
Gymshark, the athletic wear brand established by the UK's youngest billionaire, is slicing through over 290 positions—a significant portion of its workforce. Founded by Ben Francis when he was just 19 years old in his parent's garage, the company that manufactures leggings and sports bras is now shedding more than a quarter of its 1,100 employees.
While Ben Francis' brand didn't exactly attribute the layoffs to Trump's recent tariffs, an insider hinted the tariffs wouldn't help. Last fiscal year, Gymshark reported astounding sales of over £607 million, a notable increase from the previous year's £556 million. Profits, however, dropped slightly from £13.1 million to £11.9 million.
The closure of these positions might be part of Gymshark's plan to open new doors with 168 jobs. Despite the redundancies, Gymshark's success story isn't solely about profits. Establishing and nurturing a community, in addition to product quality, are key aspects of their marketing strategy[1]. Moreover, the company has stopped relying on app-based hiring due to employment rights concerns[2].
Other retailers like Uniqlo and Lush have adopted a similar approach. It could be that Gymshark is making a change towards more conventional employment practices, shuffling things around in the process[1]. The brand isn't letting the job cuts hinder its sales, with ongoing mid-season sales to keep customers interested[4].
Regardless of the reasons for the layoffs, Gymshark remains a force to be reckoned with in the athletic wear market.
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- Gymshark, a retail brand in the fashion-and-beauty industry, founded by the UK's youngest billionaire, is eliminating over 290 positions, representing nearly a quarter of its workforce.
- Despite shedding more than a quarter of its 1,100 employees, Gymshark reported significant sales of over £607 million last fiscal year, a notable increase from the previous year's £556 million.
- The redundancies at Gymshark might be part of a strategic shift to create 168 new jobs, suggesting a possible change in employment practices towards more conventional models.
- Other retailers like Uniqlo and Lush have adopted similar strategies, which could imply that Gymshark is shifting its focus in this direction.
- In the midst of the layoffs, Gymshark is keeping its customers engaged with ongoing mid-season sales.
- Despite the job cuts, Gymshark maintains a strong position in the athletic wear market and remains a formidable player in the retail sector.
