Are you a fashion enthusiast who loves to dress up for every occasion but doesn’t want to spend a fortune on designer outfits? Then, you must have heard of Rent the Runway! The trendy clothing rental service has been a go-to option for women across the United States looking to don haute couture dresses without breaking the bank. However, recent reports suggest that Rent the Runway is facing tough times as consumers cut back on non-essential expenses amid COVID-19 pandemic. In response, they have announced plans to trim their workforce. But what does it mean for their future? Let’s dive in and find out!
Rent the Runway to cut workforce
Rent the Runway is laying off workers as consumers cut back on spending. The company announced the cuts in an email to employees on Wednesday.
Rent the Runway has been one of the few bright spots in the retail sector, but even it is feeling the effects of the coronavirus pandemic. The company was founded in 2009, during the Great Recession, and has been a go-to for fashion-savvy women who want to rent designer dresses and accessories for special occasions.
But with weddings and other events canceled due to the pandemic, Rent the Runway’s business has taken a hit. The company announced in March that it would be suspending operations at its eight physical locations.
Now, Rent the Runway is taking additional steps to cut costs as it tries to weather the storm. In an email to employees obtained by Business Insider, CEO Jennifer Hyman announced that the company would be laying off 150 workers, or 10% of its workforce.
Consumers cutting back
As the COVID-19 pandemic continues to ravage the economy, consumers are cutting back on spending, and that includes spending on rental clothing. Rent the Runway, a popular clothing rental service, is feeling the pinch. The company announced today that it is laying off 25% of its workforce, or about 160 employees.
“This was an incredibly difficult decision to make,” CEO Jennifer Hyman said in a statement. “But we believe it is necessary to ensure Rent the Runway’s long-term success.”
The layoffs come as Rent the Runway is also suspending operations at its two brick-and-mortar stores, in New York City and Las Vegas. The company will focus on its online business going forward.
Rent the Runway isn’t alone in making cuts; other retailers have been forced to do the same as consumers tighten their belts. With so many people out of work or working from home, there’s simply less need for new clothes. But Rent the Runway is hopeful that things will eventually return to normal.
“We are confident that once life begins to return to some semblance of normalcy, our core business will rebound,” Hyman said. “In the meantime, we must take decisive action to ensure our long-term viability.”
How to know when it’s time to retire
As the US economy continues to sputter, many consumers are cutting back on their spending. This has led to a number of businesses struggling to stay afloat, and Rent the Runway is no exception.
In an effort to cut costs, the company announced that it will be reducing its workforce by 10%. While this may be a necessary measure for the business to stay afloat, it’s also a tough pill to swallow for those who are losing their jobs.
If you’re one of the employees who is being let go, it’s important to know your rights. You may be entitled to severance pay or unemployment benefits, depending on your situation.
It can also be difficult to decide when it’s time to retire. If you’re no longer able to do your job due to age or health reasons, then it may be time to consider retiring. However, if you still enjoy working and are able to contribute to the company, then you may want to stay on for a little while longer.
Only you can decide when it’s time to retire. But if you’re facing layoffs or other financial difficulties at work, then it’s important to know your options and make sure you’re making the best decision for your future.
Alternatives to Rent the Runway
There are plenty of other options for renting designer duds without having to spend a fortune. Here are just a few:
1. Armoire: This rental service offers designer clothing and accessories for both men and women. You can rent items for a day, week, or month, and there’s no subscription required.
2. The Black Tux: This company specializes in renting out formalwear for men. So if you need a tuxedo or suit for a special occasion, this is a great option.
3. Glam Corner: Another rental service that offers designer clothes for both men and women. You can rent items for 4 or 8 days at a time, and there’s no subscription required.
4. Le Tote: This is a monthly subscription service that allows you to rent clothes and accessories. With Le Tote, you can keep the items as long as you want or return them at any time.
5. Rent the Runway Unlimited: This is Rent the Runway’s subscription service that gives you unlimited rentals of designer clothes and accessories. It’s perfect if you’re a fashionista who likes to switch up your look often!
Conclusion
Rent the Runway’s decision to reduce their workforce is a reflection of the economic effects caused by COVID-19 and corresponding consumer cutbacks. The company must now find new ways to operate with this reduced size, which could mean streamlining processes and using technology such as AI and automation. Nevertheless, Rent the Runway has developed a loyal customer base over its decade of operation, so hopefully these measures will ensure that they remain in business for many years more.
