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Retail Business Review | Friday, April 08, 2022
In the wake of the COVID-19 pandemic, various tech companies worldwide have decided to lay off the percentage of their workforce and reduce their operating costs. Among these companies, one is the international retail brand, The RealReal.
RealReal, the online retailer, is the new technology company to lay off and furlough employees amid the outbreak of the COVID-19 pandemic. The company's quarterly revenue report announced that RealReal is laying off 10 percent of its workforce, and the layoffs are impacting almost 15% of the employees.
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By following over with the layoff, the company considers that it will be able to reduce its operating costs by more than $70 million. In a press release, the company has declared that these changes are made accordingly to "support its employees through the pandemic and ensure the team is well-positioned for a strong restart on the other side of this health crisis."
The sacked employees are from all departments, comprising the workforce from The RealReal's e-commerce centers, the luxury consignment offices, retail stores, sales organization, and headquarters. The company has also enforced a hiring freeze and focuses on reducing executives' salaries.
RealReal has been a public company for below a year; thereby, the company enrolled in the club of many tech enterprises that have implemented personnel changes due to the coronavirus outbreak.
"Provided the unknown duration of the pandemic, we've concentrated on reducing operating expenses and preserving liquidity to weather the near-term challenges and ensure we are well-positioned to capitalize on the significant opportunity before us," The RealReal CEO said Julie Wainwright said in a statement. "I am certain the strength of our balance sheet, customer satisfaction, healthy traffic trends, buyer and consignor repeat rates, and persistent progress in technology initiatives that help efficiently scaling our operations will position us to bounce back quickly once the economy stabilizes."
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