Rent the Runway Lays Off 10% of Corporate Staff

Hire the Runway will reduce its company workforce by 10 p.c, the corporate introduced in an SEC submitting Monday. The discount will have an effect on 37 workers, and might be carried out by the second quarter of fiscal 2024.

The layoffs are supposed to redirect prices towards rising Hire the Runway by means of advertising and marketing, stock enlargement, and buyer expertise enhancements, based on the corporate.

“This was not a cost-cutting train, this was a strategic realignment,” Jennifer Hyman, founder and chief govt of Hire the Runway, informed BoF Wednesday.

“We’ve spent the previous couple of years driving the enterprise to profitability, altering the unit economics and margins to guarantee that the associated fee construction of the enterprise is in the precise place, that we’re delivering the most effective buyer experiences,” Hyman added. “And now it’s about aligning our street maps and our expertise and our assets round [growth].”

Hire the Runway is on observe to be free money movement breakeven someday this yr. On the heels of the layoff announcement Monday, its shares have soared greater than 60 p.c. Nonetheless, at 76 cents on Wednesday night, Hire the Runway’s inventory is susceptible to being delisted from the Nasdaq.

“So long as we hit our profitability benchmark, that received’t be related,” Hyman mentioned.

The restructuring will end in about $11 million to $13 million in annualised money financial savings, Hire the Runway mentioned within the SEC report. As a part of the submitting, the corporate additionally introduced its president and chief working officer Anushka Salinas has resigned. In her place, Hyman has been appointed president and the corporate’s principal working officer.

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Rent the Runway’s Long Road Ahead to Profitability

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