As the U.S. economy suffers, layoffs and hiring freezes are ripping through various industries.
In the wake of the downturn, companies across tech, retail, media have announced efforts to restructure their organizations and let employees go to cut costs.
The total number of The news came about a week after the big-box retailer, which includes quits, layoffs and discharges, was 5.9 million, at a rate of 3.9%, according to data from the Bureau of Labor Statistics. Layoffs and discharges totaled 1.4 million at an unchanged rate of 0.9%.
Here’s a running list of the major layoffs announced across the retail industry.
In late July, Allbirds laid off 23 people.
“We have thoughtfully evaluated roles and processes in each department, and in each market, to ensure our operating structure is set-up for the next phase of growth,” an Allbirds spokesperson said in a statement. “In this process, we looked for ways to streamline workflows, reduce duplicative efforts, and put past learnings and operational insights into practice.
Bed Bath & Beyond
Bed Bath & Beyond announced a series of strategic changes to improve its business on Aug. 31. Part of this includes layoffs and store closures.
The company shared that these cost optimization efforts would include a reduction in force, which will include about a 20% reduction across corporate and supply chain roles. The company has also begun to close about 150 lower-performing stores.
The company on Aug. 30 reported its second quarter results and announced plans to “reduce people costs” in its global offices by approximately 10% by the end of 2023. The company said it expects these reductions will generate annual cost savings of over $100 million.
CFO Zac Coughlin said in a statement that the cuts were being made to “increase productivity” and “reinvest strategically” in digital, supply chain and consumer engagement.
Rocky Brands Inc.
Rocky Brands Inc. in June announced a round of layoffs stemming from its 2021 acquisition of five boot brands from Honeywell International Inc.
The Nelsonville, Ohio-based company bought the performance and lifestyle footwear business from Honeywell for $230 million in a cash-and-debt deal that was completed in March 2021. The portfolio included The Original Muck Boot Company, as well as the Xtratuf, Servus, Neos and Ranger brands.
After conducting a cost-savings review of the group, Rocky Brands said it identified several “operational synergies and cost saving opportunities,” including closing the Boston offices that it gained in the acquisition and reducing the non-manufacturing headcount at the acquired brands by approximately 13%.
Shopify in July laid off 10% of its staff.
In a letter to employees, co-founder and CEO Tobi Lütke said most of the impacted roles were in recruiting, support, and sales. Over-specialized and duplicate roles, as well as some groups that were “convenient to have but too far removed from building products” were also affected.
The layoffs came as the pandemic-era online shopping boom slows. Lütke said he was wrong on his projections for continued e-commerce demand.
Snap is laying off about 20% of its staff of more than 6,400 employees, the company announced on Aug. 31.
“The scale of these changes vary from team to team, depending upon the level of prioritization and investment needed to execute against our strategic priorities,” Snap Inc. CEO Evan Spiegel wrote in a note to Snap Inc. employees on Aug. 31. “The extent of this reduction should substantially reduce the risk of ever having to do this again, while balancing our desire to invest in our long term future and reaccelerate our revenue growth.”
In June, StockX laid off 8% of its workforce. The resale platform’s CEO Scott Cutler announced the layoffs to employees in an email, which said the company had taken measures to reduce costs by prioritizing existing investments, reducing discretionary expenses, placing limits on new hires and improving efficiency in the company’s trade process.
In a statement to FN, StockX said that it needed to adapt and pivot its business to keep up with “macroeconomic challenges” that are currently impacting the economy and its business.
ThredUp co-founder and CEO James Reinhart said on Aug. 15 that the resale platform would lay off about 15% of its corporate workforce and shutter one of its processing centers.
These cost cutting measures are being taken due to the deteriorating consumer health seen in recent months as inflation Mergers & Acquisitions.
VF Corporation on Aug. 30 confirmed it was cutting 600 office-based roles, which will impact 300 current workers and 300 open roles.
Steve Rendle, the president and CEO of the company that owns Vans, The North Face and Timberland, announced the layoffs in a letter to employees, according to a report from Denver Business Journal. In the letter, Rendle reportedly said the cuts were meant “The Heart and Sole of the Footwear Industry.”
VF declined to comment to FN but confirmed the accuracy of Denver Business Journal’s report.
Walmart in early August confirmed it was cutting jobs as the company updates its structure and evolves certain roles “to provide clarity and better position the company for a strong future,” a spokesperson said.
The retailer will cut hundreds of corporate roles, according the The Wall Street Journal, which first reported the news.
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