The US clothing rental platform Rent The Runway has, reportedly, decided to lay off 24 per cent of its corporate staff.
The move is being seen as a part of a revamping plan to bring down the costs and streamline the company’s organisational structure – in addition to driving operational efficiencies.
The downsizing, which is expected to be completed by the end of Q4, is expected to save the company around US $ 25 million to US $ 27 million in annual operating costs next year.
What’s noteworthy, however, is that the decision was taken despite the rental site witnessing a strong Q2.
While the revenue surged by 64 per cent to US $ 76.5 million, the active subscribers increased by 27 per cent to 124,131.
Th clothing platform was pleased with its Q2 performance, but it said that revamping was essential to help it attain profitability more quickly.
Initially started as an e-commerce clothing rental firm, Rent the Runway later opened bricks-and-mortar store locations in New York City, Chicago and elsewhere. It filed for an IPO late last year.
