Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Asos to axe 60 jobs in China closure

Asos will make around 60 people redundant as a result of the closure of its Chinese business, Drapers can reveal.

Asos

Asos announced earlier today (April 7) that it is shutting down its operations in China three years after launching, at a cost of £10m. The etailer will service its Chinese customers via the main Asos.com website, which allows shoppers to access 80,000 products rather than the 6,000 available on the Chinese website.

As a result of the decision, 60 people based at its Shanghai office and fulfilment centre will lose their jobs, while the remaining 20 members of staff will be redeployed within the business. 

Chief executive Nick Beighton said the closure of the business in China will serve shoppers in a “more efficient, less costly manner”.

City analysts welcomed the move. UBS said: “The decision reflects good capital discipline by management and an increased focus on the areas where they have more competitive advantage.”

Barclays agreed: “We view today’s announcement as a strictly positive outcome given any long term profitability in the region was dubious. We believe today’s news will come as a relief to long term shareholders as now focus and time can be allocated to more productive regions like the US, where the return on investment can be materially higher and value additive.”

For the year to August 31, Asos’s Chinese business made a loss of £5.2m, compared to a loss of £8.6m in 2014.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.