Gymshark, founded by Britain's youngest billionaire Ben Francis, is set to reduce its workforce by 296 roles while creating 168 new positions, reflecting a strategic shift amid global economic pressures and recent US tariffs.
Gymshark, a prominent gym-wear brand founded by Ben Francis, Britain's youngest billionaire, is set to reduce its workforce by nearly 300 jobs amid challenging conditions in the global economy. The company, which started in Francis's parents' garage when he was 19, announced it has identified 296 roles for redundancy, representing more than a quarter of its current workforce of 1,100 employees.
Despite these job cuts, Gymshark plans to create 168 new positions, indicating a shift in its staffing structure rather than a simple downsizing. The company has not explicitly linked the redundancies to recent tariffs imposed by former US President Donald Trump, which came into effect earlier this month, but a source close to Gymshark acknowledged that the levies "wouldn't help" the business environment.
Financially, Gymshark reported a record turnover of over £607 million for the year ending July 2024, marking an increase from £556 million the previous year. However, the company’s profits have decreased slightly, slipping to £11.9 million from £13.1 million.
These developments underscore the complex landscape faced by Gymshark as it navigates both growth and economic pressures. The Daily Mail is reporting on this evolving situation, which reflects broader challenges within the retail sector influenced by international economic policies and market conditions.
Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
8
Notes:
Narrative references recent tariffs (earlier this month) and FY2024 earnings (ending July 2024), suggesting current reporting. No indications of recycled content found, though exact article date requires URL inspection.
Quotes check
Score:
6
Notes:
Includes anonymous source's tariff comment but no direct attributable quotes. No verifiable quote origins identified through available context.
Source reliability
Score:
7
Notes:
Narrative originates from Daily Mail, a mainstream UK outlet. While generally reputable for business reporting, its tabloid nature requires cross-verification of market figures.
Plausability check
Score:
8
Notes:
Claims align with known economic pressures (tariffs, retail sector strain) and Gymshark's growth trajectory. Financial figures follow logical progression, though profit drop warrants monitoring.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
Narrative demonstrates logical consistency with recent economic developments and company history. Financial figures require external verification but appear plausible given context. Medium confidence reflects lack of direct quote verification and reliance on anonymous sourcing.
