Rent the Runway to axe 10 percent of corporate jobs

Rent the Runway is to implement a workforce reduction, impacting 37 corporate positions, about 10 percent of its staff, and the resignation of COO and president Anushka Salinas, according to a filing with the U.S. Securities and Exchange Commission (SEC).

The move is part of a strategic initiative to invest in growth areas such as marketing and customer experience, reported WWD. Despite a positive investor response with a 24.5 percent increase in the company's shares, Rent the Runway is among the companies unveiling workforce reductions in the new year, reflecting the prevailing high interest rates and persistent inflation concerns impacting businesses.

The restructuring aims to strengthen the growth funnel, emphasising marketing and consumer product enhancement. A rental category pioneer, the company is targeting to break-even in fiscal 2024. The restructuring, expected to conclude by the end of Q4 fiscal 2023, will result in charges of 3 to 4 million dollars but annual cash savings of 11 million dollars to 13 million dollars, WWD said.

Anushka Salinas will serve as a consultant until February 29 with CEO and co-founder Jennifer Hyman to take on the additional role of president.