Party City Layoffs 2022: What to Know About the PRTY Job Cuts

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  • Party City (PRTY) is planning for layoffs due to inflation.
  • It will cut jobs by 19% through layoffs and not filling open roles.
  • This comes after it missed estimates for Q3.
Party City Layoffs: Image of a Party City (PRTY Stock) branded store

Source: Roman Tiraspolsky / Shutterstock.com

Party City (NYSE:PRTY) is the latest company to announce layoffs as it prepares to cut 19% of its workforce.

The holiday retailer announced it will achieve this goal by laying off employees and not filling open positions. This follows its earnings for the third quarter of 2022, which saw it miss estimates as inflation weighed on its report.

Inflation is resulting in consumers spending less money, and Party City is among the companies strongly affected by this. That holds especially true, as its goods are more of a luxury and aren’t required to survive.

Party City Layoffs Make Sense

That earnings report, as well as the Party City layoffs, have analysts taking a tough stance on PRTY stock. Analysts at Telsey Advisory Group said the following in a statement obtained by RetailDive:

“Uncertainty about the level of demand, more promotions at discounters that can result in lower traffic to Party City stores, and the ability to manage rising costs keep us concerned.”

As far as trading goes today, some 3.5 million shares of PRTY stock have changed hands as of this writing. That’s low compared to its daily average trading volume of about 7.7 million shares.

PRTY stock is down 7.8% and has fallen 86.1% since the start of the year.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/11/party-city-layoffs-2022-what-to-know-about-the-prty-job-cuts/.

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