Rent the Runway Tumbles After Unexpected Drop in Subscribers
- Company to dismiss around one-quarter of corporate staff
- Fashion rental firm sees up to $27 million in annual savings
Shoppers look through racks at a Rent the Runway store in San Francisco.
Photographer: Kelly Sullivan/Getty ImagesThis article is for subscribers only.
Rent the Runway Inc. shares fell 24% in postclose trading after the company reported an unexpected decline in subscribers and said it was laying off staff as part of a restructuring plan.
The fashion rental company said the plan would deliver $25 million to $27 million in annual cost savings, which would primarily come from dismissing about a quarter of its nonhourly employees. “We’re restructuring so we’re in a position of strength, no matter what happens in the macro environment,” Rent the Runway Chief Executive Officer Jennifer Hyman said in an interview. She declined to say how many employees were being affected.