Rent the Runway, a leading luxury retailer, reveals significant workforce adjustments with the resignation of Anushka Salinas, Chief Operating Officer, effective January 31. This move is part of a broader initiative impacting 10% of the company’s overall staff.
In an SEC filing, Rent the Runway discloses that 37 positions will be affected, marking a strategic effort to streamline operations, reduce costs, and «reignite» growth. The company emphasizes a renewed focus on critical areas such as marketing, consumer product development, and customer experience to capture a larger share of the rental subscription market.
Rent the Runway states, «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.» The restructuring is expected to be completed by the end of the fourth quarter of fiscal 2023, incurring charges of $3 million to $4 million but resulting in annual cash savings of $11 million to $13 million.
Anushka Salinas will continue to contribute in a consulting role until February 29. Simultaneously, Jennifer Hyman, CEO, and co-founder has taken on the additional role of president.
This announcement follows Rent the Runway’s September 2022 workforce reduction of 24%, underscoring the company’s commitment to enhancing customer experience and pursuing growth initiatives.
Despite ongoing restructuring, Rent the Runway has made noteworthy progress in narrowing earnings losses over the last 18 months. In the third quarter of fiscal year 2023, net losses decreased to $31.5 million, compared to $36.1 million in the same period of the previous fiscal year. However, the company reported a 6% sales downturn in the quarter ending October 31. These workforce changes and strategic reallocation of resources position Rent the Runway for a focused and sustainable path toward future growth and profitability.
