Shares of Asos PLC (LON: ASC) have plunged 4% to 3398p today after the fashion retailer entered into consultations with 500 of its staff on potential job cuts.
All affected employees are part of Asos’ customer care centre. The restructuring process has just begun and it may take weeks before the final number of affected staff is revealed.
Asos slashed 100 jobs in March amid the pandemic, in addition to 100 last October. The fashion retailer insists that this restructuring process has started in October and it is not directly associated with the pandemic.
According to the reports, Asos is working diligently to provide employment for affected staff in other sectors of the company.
Asos share price has fallen below 3400p to trade over 4% in the red. Just two days ago, Asos stock price came close to setting a new 2020 high above 3600p. Last week, Asos said it forecasts “substantial” profit growth for the year ending August 31.