E-commerce

Rent the Runway cutting corporate staff due to spending slowdown

Photo by istock.com

September 19, 2022

Rent the Runway, an e-commerce company that lets customers rent, subscribe or buy designer apparel and accessories, will lay off 24% of its corporate workforce in response to a slowdown in consumer spending.

The retailer did not specify the number of roles to be reduced. Rent the Runway, based in New York, was founded 14 years ago and has seen a downward shift in consumer activity in the post-pandemic time frame, according to a Wall Street Journal report.

"We're significantly pulling forward the path to profitability. We can get to profitability at much lower revenue numbers," co-founder and Chief Executive Jenn Hyman told the Journal. "We're not relying on growth in the same way to get us to profitability."