Boohoo CEO John Lyttle to Step Down Amid Strategic Review and Company Overhaul
John Lyttle, CEO of Boohoo, is set to step down as the British fashion retailer embarks on a strategic review aimed at revitalizing its operations. The company, known for its popular brands including PrettyLittleThing, Debenhams, and Karen Millen, announced that a comprehensive overhaul is necessary to “unlock and maximise shareholder value.”
Boohoo’s leadership stated that the firm is currently “fundamentally undervalued,” prompting the need for significant changes. Despite experiencing a surge in online shopping during the COVID-19 pandemic, Boohoo has struggled to maintain its competitive edge against rising rivals like Shein and Temu. Additionally, the company has faced supply chain issues and an increase in product returns, which have negatively impacted its profit margins.
Recent figures highlight the challenges Boohoo is facing: its gross merchandise value after returns fell by 7% to £1.2 billion (€1.4 billion) in the six months ending August 31. Adjusted profits also plummeted by 32%, coming in at £21 million (€25.3 million). The firm is scheduled to release its full first-half results next month, which will provide further insights into its financial performance.
Lyttle has been at the helm of Boohoo for five years and will remain in his position until a successor is appointed. The company is also navigating financial hurdles, having secured a new £222 million debt refinancing package to support its transformation efforts.
As news of Lyttle’s impending departure and the strategic overhaul unfolded, Boohoo’s share price declined by approximately 5%, trading at £30.10 (€36) around 15:30 CEST. This decline reflects investor concerns over the company’s future and its ability to compete effectively in a rapidly changing market.
Analysts suggest that Boohoo must focus on improving its supply chain efficiency and addressing the high rate of product returns to enhance profitability. Additionally, revitalizing its brand image and marketing strategies could be crucial for attracting consumers back to its online platform.
The upcoming strategic review is expected to provide a roadmap for the company’s future, as it seeks to adapt to evolving consumer preferences and overcome the challenges posed by its competitors. With Lyttle’s departure marking a significant shift in leadership, Boohoo will need to act decisively to regain its standing in the competitive fashion retail landscape.
Business
Apple Agrees to $95 Million Settlement Over Allegations of Eavesdropping Through Siri
Apple has agreed to pay $95 million to settle a lawsuit accusing the tech giant of secretly listening to users through its virtual assistant, Siri. The settlement, which was reached in a preliminary agreement, comes after claims that Apple eavesdropped on users’ conversations and shared voice recordings with advertisers.
The lawsuit alleges that Siri was activated without users’ consent, even when the wake phrase “Hey, Siri” was not used. The claimants also argue that Apple’s failure to delete these recordings led to them being shared with advertisers, who used the data to target users with personalized ads.
Although Apple has not admitted to any wrongdoing, the company has stated in court filings that it denies the allegations that it recorded or disclosed conversations without consent. Additionally, Apple claims it permanently deleted individual Siri audio recordings collected prior to October 2019.
The lead plaintiff in the case, Fumiko Lopez, alleges that both she and her daughter were recorded without their permission. They claim that after discussing products like Air Jordans, they began seeing targeted ads for those products.
The lawsuit is classified as a class action, meaning it is brought forward by a small group of individuals on behalf of a larger group of affected users. In this case, eligible US-based claimants could receive up to $20 per Siri-enabled device they owned between 2014 and 2019. Lawyers representing the claimants are expected to receive 30% of the settlement fee, amounting to nearly $30 million.
Apple’s decision to settle, despite denying any liability, allows the company to avoid the risks of a lengthy trial that could result in a higher payout. The settlement amount, while substantial, is less than the potential cost of a trial verdict, especially as Apple has continued to see strong financial performance. The company reported $94.9 billion in revenue for the three months ending September 2024.
This settlement adds to a growing list of class action lawsuits Apple has faced in recent years. In January 2024, Apple began paying out in a $500 million lawsuit over allegations of deliberately slowing down older iPhones. Earlier in March, it agreed to pay $490 million in a class action over its App Store practices in the UK. The company is also facing a class action from the consumer group Which?, accusing Apple of overcharging customers for its iCloud service.
The same law firm representing the claimants in the Siri case is also suing Google for similar allegations of eavesdropping through Google devices, with that case ongoing in the same California court.
Business
Euro Hits Two-Year Low Against US Dollar Amid Economic Concerns
Business
ICT Specialists Lead EU Job Market as Most Advertised Profession
Information and Communication Technology (ICT) specialists are the most sought-after professionals in the European Union, making up 9% of all online job advertisements in 2023, according to new data from Eurostat. The findings shed light on the EU’s labor market trends, highlighting the most in-demand skills and occupations.
ICT Specialists Dominate Job Ads
In 2023, ICT specialists were featured in 871,000 online job advertisements, underscoring the high demand for professionals in this field. Software and applications developers and analysts ranked second with 515,000 ads (5.3%), followed by engineering professionals at 412,000 ads (4.3%).
Other notable professions included manufacturing workers (385,000 ads), physical and engineering science technicians (351,000 ads), and shop salespersons (312,000 ads). Transport and storage laborers, sales and marketing managers, clerical support workers, and financial professionals also featured prominently.
Healthcare and Service Occupations in Demand
The healthcare sector had a strong presence in online job postings, with 96,000 ads for doctors and 115,000 for personal care workers in health services. Combined with other health-related roles, these accounted for 3.5% of total job ads. Service roles, such as cooks and food preparation assistants, also saw significant demand, with nearly 100,000 ads posted.
Heavy truck and bus drivers were another key occupation, appearing in 136,000 ads, while car, van, and motorcycle drivers were sought after in 61,000 postings.
Key Skills Employers Seek
Across all fields, “willingness to learn” emerged as the most frequently requested skill, appearing in 26.2% of job ads. Teamwork skills were also highly valued, with 21.4% of postings highlighting the need for collaboration. Proactivity ranked third at 12.4%, while creative and innovative thinking was less commonly sought, appearing in only 4% of ads.
Understanding Recruitment Challenges with OJAR
Eurostat’s Online Job Advertisement Rate (OJAR) provides insights into recruitment challenges, taking into account both job ads and the number of employees in each sector. Sales, marketing, and development managers had the highest OJAR at 26.6%, followed by manufacturing workers (22.4%) and other sales workers (17.6%).
Public sector roles like healthcare workers and teachers were less represented online, likely due to traditional recruitment methods outside digital platforms.
Caution on Job Ad Data
Eurostat cautions that job advertisements are not direct indicators of vacancies. Some ads may represent multiple positions or exploratory postings by employers. Moreover, certain roles, particularly in the public sector, may not be widely advertised online.
The data offers valuable insights for job seekers and policymakers, pointing to the growing demand for ICT specialists and the evolving skillsets required in the EU’s labor market.
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