British sportswear brand Gymshark has warned it could cut up to 121 jobs as it expands globally.
The fast-growing brand last year announced plans for further expansion in the US, which has become its largest market of late.
As part of his growth strategy, Gymshark founder and CEO Ben Francis announced Thursday that 121 employees could be laid off by the end of July. However, he added that “over 100 new jobs would be created” under the proposals.
Francis said the “incredibly difficult decision” was driven by the company’s “ambitious growth plans”, as well as the “need to create commercial accountability in the regions and ensure customer strategies are driven by local lenses, specific knowledge and data , not just by those of us here in Solihull”.
International ambitions Founded by Francis in 2012 in his parents’ garage in Birmingham, Gymshark has in recent years placed itself at the forefront of the burgeoning sportswear market. In 2020 it became only the second UK company since 2001 to reach a valuation of over £1 billion without prior investment. In July 2021, the company increased its turnover by more than 50 percent to over £400 million, according to the Financial Times.
Last year, the brand said a focus of its international growth would be expansion into the US and Asia. Gymshark opened its first US distribution centers in 2021 and expects high double-digit growth in the market over the coming years.
This translated and edited post previously appeared on FashionUnited.uk.