Revolution Beauty has revealed it cut more than 80 jobs since March, as it blamed deepening losses on its previous management.
The beauty retail business is undergoing a major turnaround programme under the leadership of its founders, who returned to the group earlier this year.
Revolution Beauty said its performance under previous management over the half-year to August 31 was “worse than expected”.
It warned that sales and adjusted earnings for the full-year will therefore “not match” the guidance it gave in a previous update in August.
The brand told shareholders that revenues tumbled by 31.8% to £49.4 million for the latest half-year.
It said this was driven by “disruption carried over from prior-year strategic and operational issues”.
It added that efforts by previous bosses to mitigate cost pressures were also not sufficient to stop a worsening of the group’s losses.
The company told shareholders that it has reduced its headcount by 82 since the start of March to 123 currently as part of the shake-up of its operations.
Revolution reported that pre-tax losses widened to £18.4 million for the half-year, compared with £10.9 million a year earlier.
Founders Tom Allsworth and Adam Minto have spearheaded current turnaround efforts after returning to the business, as chief executive and in a consultancy role respectively.
Mr Allsworth said: “Although I was not part of the business during the six-month reporting period, it is clear that the group faced a number of significant challenges.
“I recognise the impact this has had on our people, our partners and our performance.
“However, with the actions taken since the period end, we have laid the foundations for a more disciplined, focused and resilient business.
“We are now entering an exciting time for Revolution Beauty as we get back to do.”
Shares in Revolution Beauty moved 2% higher on Thursday morning.
