New York, New York-based Rent the Runway, an operator of a fashion e-commerce platform that allows users to rent, subscribe, or buy designer apparel and accessories, has announced a restructuring initiative to contain costs.
The effort will impact 24% of the company's corporate workforce, an estimated 240 employees.
According to Chief Executive Jenn Hyman, “We’re significantly pulling forward the path to profitability. We can get to profitability at much lower revenue numbers. The restructuring won’t cut marketing, inventory, or customer-facing positions. We’re not relying on growth in the same way to get us to profitability.”
“It is becoming clear to us that our customers live, work, socialize and travel differently in 2022 than they did prior to the pandemic. We are still learning how these types of changes in customer behavior impact the business, particularly in challenging natural environments. If remote and hybrid work trends increase, our subscription business might become more socially and casually oriented, and we might experience more seasonal peaks and troughs.”
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?