Rent The Runway has announced that its Chief Operating Officer and President, Anushka Salinas is resigning effective from 31st January, as part of the luxury retailer’s latest workforce layoffs impacting 10 per cent of its overall staff.
In an effort to reduce expenses and “reignite” growth, the American corporation announced in an SEC filing that the most recent wave of layoffs will impact about 37 people.
Rent the Runway released a statement saying, “The company 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.” The company has worked over the past few years to shore up critical aspects of the customer journey to propel growth in 2024 and beyond.
By the conclusion of the fourth quarter of fiscal 2023, the restructuring should be mostly finished and result in charges of US $ 3–US $ 4 million. The change will result in yearly cash savings of between US $ 11 million and US $ 13 million.
Salinas will continue to work for the company until 29th February in a consultancy capacity. Chief executive officer and cofounder Jennifer Hyman now serves as president as well.
A total of 24 per cent of corporate staff were laid off as of September 2022, according to Rent the Runway, which also reallocated resources and reorganised several functions in order to keep “focusing on customer experience and growth initiatives.”
With its most recent financial update in December disclosing net losses cut to US $ 31.5 million, as opposed to a loss of US $ 36.1 million in the third quarter of fiscal year 2022, the company has managed to narrow profits losses for each separate quarter over the last 18 months. Nonetheless, the business disclosed a 6 per cent decline in sales for the quarter that ended on 31st October.
