THG is implementing significant operational changes as it mandates a return to office for employees and announces potential redundancies.
- The Hut Group (THG) is requiring its staff to work from the office five days a week, reversing earlier flexible working arrangements.
- Up to 171 job cuts are anticipated, spanning six divisions, including the beauty and nutrition sectors.
- Following a strategic partnership with Frasers Group, THG outlines a restructuring plan aimed at enhancing operational efficiency.
- The changes are driven by a need to maintain growth and profitability following significant financial losses.
The Hut Group (THG), in a decisive move, has instructed its workforce to resume in-office operations five days a week. This decision marks a departure from previous commitments to a flexible work environment that allowed remote work once a week. The shift back to full-time office attendance is attributed to “inconsistent adherence” to the existing policy, which THG stated was adversely affecting company culture.
Simultaneously, THG has informed employees about impending job cuts. Up to 171 roles are expected to be redundant across six key divisions, including beauty and nutrition. This announcement was conveyed through a memo, as reported by the Financial Times. These measures form part of THG’s strategy to “restructure a number of business areas to ensure sustainable growth, profitability, and cash generation.”
The restructuring and job cuts were outlined after THG disclosed a pre-tax loss of £252 million for the year ending 31 December 2023, a significant sum albeit an improvement on the £549.7 million loss the previous year. The company stresses that these difficult decisions are essential for leveraging recent technological investments and maintaining efficiency.
Part of THG’s new operational focus follows its partnership with Frasers Group, formalised in June, which included Frasers’ acquisition of luxury etailer Coggles. This collaboration is seen as vital for THG to streamline operations and align with its broader strategic objectives. A THG spokesperson reiterated the company’s commitment to “improving operational efficiency” and noted that restructuring could also open opportunities for affected employees to be reassigned within the group.
While some employees may retain their formal flexible working arrangements, these are subject to review, indicating that THG is steering towards a more centralised and traditional working model. The company acknowledges the unfortunate nature of job redundancies but emphasises its support for affected staff, aiming to offer alternative roles where possible.
THG’s new operational directives signify a strategic pivot to reinforce business viability amid challenging financial circumstances.
