Clothing rental company Rent the Runway is undergoing a restructuring, according to the company’s latest financials press release. The company writes that it will lay off around 24 percent of “blue collar workers” due to the reorganization of functions and reallocation of resources.
Rent the Runway states that the restructuring costs will be approximately US$2.5 million. Although the plan comes at a cost, the company expects annual savings of between €25 million and €27 million. The restructuring is expected to be completed by the fourth quarter of 2022, the press release said.
The US company reports record growth of 64 percent for the second quarter of fiscal 2022. As a result, earnings totaled $76.5 million (€74.5 million). Net income improved slightly compared to the second quarter of 2021 as the net loss was reduced by $9 million to $33.9 million. Adjusted EBITDA was $1.8 million (€1.7 million), returning to profitability.
