The owner of brands such as Myprotein has put almost 200 jobs at risk in Greater Manchester.
Online retail and software giant THG informed staff on Tuesday, April 4, that 180 roles are at risk of redundancy at THG Studios.
THG said the move is as a result of the closure of its OnDemand division. The Manchester Evening News understands that THG is also closing ProBikeKit, which it bought in 2013.
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THG Studios has been around for more than 16 years and supports brands such as Myprotein, ESPA and LookFantastic.
A THG spokesperson said: "Following a strategic review of our OnDemand division, as announced in THG’s trading update of 17 January 2023, we can confirm that we are proposing to discontinue operations in the OnDemand division across all sites. We are currently consulting with impacted colleagues and will take steps to minimise the number of redundancies.
"We are also consulting with certain colleagues in THG Studios where, following the closure of OnDemand, we expect associated workflow to reduce proportionately. THG is committed to supporting all affected colleagues and, where possible, we will endeavour to find colleagues alternate roles within the wider THG Group."
At the start of the year, THG revealed it was reviewing "lossmaking categories and territories within the THG OnDemand division", which includes websites such as Zavvi and Pop in a Box.
At the time it said the move would increase its focus on its core beauty and nutrition ecommerce businesses as well as Ingenuity.
The review, as well as an internal reorganisation, has already seen the loss of 2,000 jobs during 2022, according to the FT, and will save £100m a year.
Also in January, THG confirmed that a further £30m of savings are to be found this year. At the time, THG warned its profits for 2022 will be lower than previously expected, despite its sales rising to record levels.
The group said it now forecasts its adjusted earnings before interest, taxation, depreciation and amortisation of between £70m and £80m for the last 12 months, down from the £100m-£130m forecast in its last update in October.
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