Gymshark has blamed “macroeconomic volatility” for putting hundreds of jobs at risk as it gears up for business restructuring, Retail Week can reveal.
It is understood that 296 roles are at risk of redundancy, which is around a third of Gymshark’s total employees.
Gymshark confirmed it has proposed a business restructure. A spokesperson told Retail Week it comes amid “intense macroeconomic volatility” and is essential to “weather the storm” and drive future growth.
Gymshark said while 296 roles face redundancy, it is also creating 168 new roles as part of the restructure.
Which departments are affected by the restructuring and the new roles being created remain unclear.
This comes despite chief executive Ben Francis hailing “another strong year of growth” for the brand, which saw sales surpass £600m for the first time.
Gymshark’s adjusted EBITDA for the full year to July 31, 2024, rose 14% but profit before tax fell from £13.1m to £11.9m.
A Gymshark spokesperson said: “We can confirm we have proposed a business restructure, which will place approximately 296 roles at risk of redundancy. However, at the same time, we will be creating 168 new roles to help drive our future growth. Therefore, our immediate priority is to help and support those at risk through this process while seeking to offer as many of them as possible these new roles.
“We find ourselves in a time of intense macroeconomic volatility. We, like so many others in the retail sector, need to be set up not only to weather these near-term storms but also to build and grow in the future.
“We have therefore carefully reviewed our operating model and organisational structure to ensure we have the right teams and roles to support these goals.”
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