In the wake of the COVID-19 pandemic, several tech companies all over the world have decided to layoff the percentage of its workforce and reduce its operating costs. One of these companies is the international retail brand, The RealReal
Fremont, CA:The RealReal, the online retailer, is the latest technology company to lay off and furlough employees amid the outbreak of COVID-19 pandemic. The company’s quarterly revenue report announced that The RealReal is laying off 10 percent of its workforce, and the furloughs impacting almost 15 percent of the employees.
By following through with the layoff, the company believes that it will be able to reduce its operating costs by more than $70 million. The company in a press release has stated that these changes are made accordingly to “support its employees through the pandemic and ensure the team is well-positioned for a strong restart on the other side of this health crisis.”
The furloughed employees are from all departments, including the workforce from The RealReal’s e-commerce centers, the luxury consignment offices, retail stores, sales organization, and headquarters. The company has also implemented a hiring freeze and is focused on reducing the salaries of executives.
The RealReal has been a public company for less than a year; by doing so, the company entered into the club of growing number of tech enterprises that have implemented personnel changes due to the outbreak of the coronavirus.
“Given the unknown duration of the pandemic, we’ve focused on reducing operating expenses and preserving liquidity to weather the near-term challenges and ensure we are well-positioned to capitalize on the significant opportunity in front of us,” The RealReal CEO Julie Wainwright said in a statement. “I am confident the strength of our balance sheet, customer satisfaction, healthy traffic trends, and buyer and consignor repeat rates, along with continuing progress in technology initiatives that support efficiently scaling our operations, will position us to bounce back quickly once the economy stabilizes.”
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