Rent the Runway COO departs amid workforce cuts

Rent the Runway COO departs amid workforce cuts

Rent the Runway has announced Anushka Salinas, chief operating officer and president, has resigned effective January 31, as part of the luxury retailer’s latest workforce layoffs impacting 10% of its overall staff.

Rent the Runway

The U.S. company said in a SEC filing that some 37 positions will be affected by the latest round of layoffs, as it looks to cut costs and “reignite” growth.

“The company has worked over the past several years to shore up critical aspects of the customer journey to propel growth in 2024 and beyond, and is now focused on investing more into areas of the business that reignite the growth funnel, including marketing, consumer product, customer experience and more, enabling RTR to capture more of the large and growing rental subscription market,” Rent the Runway said in a statement.

The restructuring is expected to be mostly completed by the end of the fourth quarter of fiscal 2023 and lead to charges of $3 million to $4 million. Cash savings from the move will tally $11 million to $13 million on an annual basis.

Salinas will stay on in a consulting role at the company until February 29. Jennifer Hyman, chief executive officer and cofounder, has taken on the additional role of president.

In September 2022, Rent the Runway revealed total workforce reductions of approximately 24% of corporate employees, reorganizing certain functions and reallocating resources to continue “to focus on customer experience and growth initiatives.”

Over the last 18 months, the company has managed to narrow earnings losses for each respective quarter with its most recent financial update in December revealing net losses narrowed to $31.5 million, as compared to a loss of $36.1 million in the third quarter of fiscal year 2022.

The company did, however, report a 6% sales downturn during the quarter ending October 31.

Copyright © 2024 FashionNetwork.com All rights reserved.

Source link

post a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.