UK online retailer Made.com to cut jobs, review options

UK online retailer Made.com to cut jobs, review options

The Made.com website can be seen on a smartphone for a logo displayed in this image, taken on June 16, 2021. REUTERS/Dado Ruvic/Illustration

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Sept 23 (Reuters) – Britain’s Made.com (MADE.L) is cutting jobs and rethinking its strategic options as the online furniture retailer grapples with a sharp drop in consumer spending and supply chain problems that have pushed up costs, it said Friday.

The company will cut costs by laying off staff in the coming weeks, it said in a statement, as it reviews options, including a formal sale process and strategic investments.

It did not immediately disclose how many employees would be laid off. An FT report late Thursday said about 35% of the group’s workforce was likely to leave.

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The company, which made its market debut in London just 15 months ago, said it had to sell goods at a discount to reduce inventories, hurting margins and cash position.

On Friday, it also withdrew its full-year forecast. It had warned in July of bigger losses this year and said it did not expect an improvement in demand for big-ticket items anytime soon.

UK consumers are grappling with a worsening cost of living crisis as prices of everything from food to fuel have risen, prompting them to cut back on non-essential purchases.

In the past year, supply chain disruptions, exacerbated only by the Russian invasion of Ukraine, have also pushed up costs for businesses.

Made.com said market conditions have changed “radically” since the initial public offering, thwarting its plans for a potential capital increase from market investors.

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