AM I NEXT? NO LOVE AT RENT THE RUNWAY

New York, New York-based Rent the Runway, an operator of a fashion e-commerce platform that allows users to rent, subscribe, or buy designer apparel and accessories, has announced a restructuring initiative to contain costs.

The effort will impact 24% of the company's corporate workforce, an estimated 240 employees.

According to Chief Executive Jenn Hyman, “We’re significantly pulling forward the path to profitability. We can get to profitability at much lower revenue numbers. The restructuring won’t cut marketing, inventory, or customer-facing positions. We’re not relying on growth in the same way to get us to profitability.”

“It is becoming clear to us that our customers live, work, socialize and travel differently in 2022 than they did prior to the pandemic. We are still learning how these types of changes in customer behavior impact the business, particularly in challenging natural environments. If remote and hybrid work trends increase, our subscription business might become more socially and casually oriented, and we might experience more seasonal peaks and troughs.”

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. We see good people being laid off through no fault of their own. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT SHOPIFY USA

San Francisco, California-based Shopify USA, a division of the Canadian multinational e-commerce platform company headquartered in Ottawa, Ontario, has announced a major 10% companywide reduction in force.

The reason given for the reduction in headcount was that the post-COVID purchasing using e-commerce has declined sufficiently to prompt an adjustment in personnel to market conditions.

Approximately 1,000 employees will be impacted. According to the company, most of the layoffs will affect "recruiting, support, and sales, and across the company we’re also eliminating over-specialized and duplicate roles, as well as some groups that were convenient to have but too far removed from building products."

Shopify CEO Tobias Lütke noted in a blog post...

How we got here

When the Covid pandemic set in, almost all retail shifted online because of shelter-in-place orders. Demand for Shopify skyrocketed. To help merchants, we threw away our roadmaps and shipped everything that could possibly be helpful. It was hard, but we know for a fact that more merchants’ businesses survived the pandemic because of the work we did in this time and that’s exactly what our mission is about.

Shopify has always been a company that makes the big strategic bets our merchants demand of us - this is how we succeed. Before the pandemic, ecommerce growth had been steady and predictable. Was this surge to be a temporary effect or a new normal? And so, given what we saw, we placed another bet: We bet that the channel mix - the share of dollars that travel through ecommerce rather than physical retail - would permanently leap ahead by 5 or even 10 years. We couldn’t know for sure at the time, but we knew that if there was a chance that this was true, we would have to expand the company to match.

It’s now clear that bet didn’t pay off. What we see now is the mix reverting to roughly where pre-Covid data would have suggested it should be at this point. Still growing steadily, but it wasn’t a meaningful 5-year leap ahead. Our market share in ecommerce is a lot higher than it is in retail, so this matters. Ultimately, placing this bet was my call to make and I got this wrong. Now, we have to adjust. As a consequence, we have to say goodbye to some of you today and I’m deeply sorry for that."

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT THRASIO

Walpole, Massachusetts-based Thrasio, an Amazon aggregator of e-commerce consumer goods companies and products, has announced a restructuring and a reduction in force that will commence May 13, 2022, and impact an, as yet unknown, number of employees. The company will replace its only remaining founder and CEO, Carlos Cashman, in August 2022.

As noted in a company-wide email…

"As you know, we've been working to execute a transformation that will strengthen the foundation we've built and ensure we're set up for a strong and sustainable future. As we've assessed the market landscape and our organization, we continue to see significant opportunities ahead, and we need to make some strategic and operational changes to ensure Thrasio is positioned for long-term success."

"Today we are sharing the news that we've made the decision to reduce the size of the Thrasio team. This is not an easy decision – especially within a culture like ours that is shaped around community and sharing. Each one of you has helped build this business. To those who will no longer be on the journey, we're hopeful and confident this is a launching pad for your next great adventure, and we'll make sure we do whatever we can to help support that transition."

"We've been thoughtful and deliberate in determining the workforce reductions that were necessary. We took a fresh look at our vision, and assessed teams, functions, people, and skill sets, mapping them to the critical areas we need going forward. As part of this effort, we've also redeployed people to contribute in areas of the organization needing their skills and experience."

"To the Thrashers who will be leaving the company: these reductions are not a reflection of you or your work. You're talented and dedicated, and any company would be lucky to have you. We deeply appreciate all you have given to Thrasio. We're committed to doing everything we can to set you up for a successful next step in your career."

"To those of you who are saying goodbye to teammates, take this time to honor and support your colleagues who are leaving. Share contacts, make introductions and find other ways to help them.

Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?