Boozt, which started in Sweden in 2007 and sells fashion, including sportswear, hardware and shoes, had sales of SEK 8 billion (€0.8bn) in 2024 and has ambitious financial targets for the near future. The company, which last made a profit of just over SEK 250 million (€25m) in 2023, aims to turn over 15 billion Swedish kronor (€1.5bn) within a few years. The company’s management believes that investments in new technologies and AI will enable it to reach that goal faster than traditional labor would.
Boozt’s management believes that the reorganization is the only way for Boozt to remain a competitive company: “As a tech-driven company, Boozt remains committed to leveraging technological innovation to maintain a competitive edge in the dynamic e-commerce landscape,” the company states.
Hermann Haraldsson, CEO & Co-founder, says: “We have successfully harnessed technology to streamline operations and enhance efficiency. As part of this ongoing transformation, we are resizing our workforce to align with the efficiencies gained through these advancements. This decision is critical to achieving our long-term goal of a 10 percent margin while building a sustainable and competitive business.”
Boozt employs over 1,100 people, and approximately 110 – or about 10 percent of the permanent staff – will be losing their jobs once the reorganization is complete. Boozt says it will be offering them support and resources.
Right now the company is working toward the release of its Q4 2024 interim financial report, scheduled for Feb. 7, 2025. It expects by then to have greater clarity on the impact. However, Boozt says that the realignment, with its job cuts, will be implemented during Q1 2025.
Since its founding, Boozt has built a base of over 3.5 million active customers in the Nordic region on Boozt.com.
