Rent the Runway (NASDAQ:RENT) layoffs are on the way as the shared designer closet company announced plans to cut jobs as part of a restructuring plan.
A filing with the U.S. Securities and Exchange Commission (SEC) reveals that Rent the Runway is going to cut 10% of its workforce as part of that restructuring. The company intends to complete the major of its restructuring by the end of its fiscal fourth quarter of 2023.
Rent the Runway says that the layoffs will result in one-time charges between $3 million and $4 million. The company expects to suffer these charges during fiscal Q4 2023.
To go along with that, Rent the Runway is estimating annual savings of $11 million to $13 million thanks to its restructuring plan. It attributes a large part of these savings to its workforce reduction.
Rent the Runway Layoffs Trigger Executive Departure
Rent the Runway says that in light of the layoffs, President and Chief Operating Officer Anushka Salinas has resigned from the company. This has CEO Jennifer Hyman serving as the company’s new President and acting as its “principal operating officer.”
Rent the Runway joins a growing list of companies that are announcing layoffs in the new year. This comes as interest rates remain high and inflation is an ongoing concern for businesses.
RENT stock is up 10.2% as of Tuesday morning.
Investors looking for all of the latest stock market stories are in the right place!
We have all of the hottest stock market news that traders need to know about on Tuesday! A few examples include why shares of Rocket Lab (NASDAQ:RKLB), Juniper Networks (NYSE:JNPR) and Unity (NYSE:U) stock are in the news today. You can learn all about these matters at the links below!
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On the date of publication, William White did not hold (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.
