A Washington company now announces unexpected layoffs indicating that a total of 99 workers will be affected.
Seattle based startup Flexe has confirmed a substantial reduction in its workforce, with a recent Worker Adjustment and Retraining Notification (WARN) filing in Washington state.
This move marks another significant round of job cuts for the company, following a previous layoff in September that impacted a whopping 131 positions in Washington state.
Flexe employed around 260 people right before this layoff, meaning 38% of its current workforce is currently being let go.
Flexe is known for assisting online retailers with warehousing and shipping needs and with a $1 billion valuation in 2022 following an incredible $119 million Series D funding round.
Increased online shopping and freight volumes propelled this growth during the pandemic.
After raising the Series D round, Siebrecht highlighted the importance of managing cash smartly in the face of market uncertainty and focusing on scalable growth.
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Also Read: A US Company Now Declares An Unexpected Bankruptcy
Other Economy News Today
A designer retailer now announces an unexpected 10% layoff of its corporate staff, part of a new restructuring plan to save millions.
Rent the Runway says the move is part of a plan that will result in $11 million to $13 million in annualized run rate cash savings.
The 10% layoff accounts for 37 of the company’s corporate roles, the company disclosed in a Form 8-K filed with the Securities and Exchange Commission on Monday.
The designer rental service’s Chief Operating Officer and President Anushka Salinas resigned effective Jan. 31 “in light of the Restructuring Plan,” and will stay with the company in an advisory role until Feb. 29.
Rent the Runway CEO Jennifer Hyman was appointed president and designated the company’s principal operating officer.
The restructuring plan also excludes the potential hiring of new employees or other additions to the company’s costs and expenses.
The move was designed to “focus its workforce and cost structure” toward growth and its profitability goals based on its anticipated budget for its 2024 fiscal year, according to the filing.
A Rent the Runway spokesperson said the company’s new structure is intended to help the business achieve free cash flow and breakeven in its 2024 fiscal year.
Rent the Runway expects to incur $3 million to $4 million in charges due to the plan in the fourth quarter of its fiscal year, per the filing.
Of these charges, $2 million to $3 million will come from employee severance and related costs. About $1 million of the charges are expected to include a non-cash impairment charge of company assets.
“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, and is now focused on investing more into areas of the business that reignite the growth funnel, including marketing, consumer product, customer experience and more, enabling RTR to capture more of the large and growing rental subscription market,” the spokesperson said in an email to sister publication Fashion Dive.
Also Read: Wells Fargo is Now Freezing Bank Accounts in New Scandal
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