On-line consignment firm The RealReal is the newest tech firm to put off and furlough staff amid the COVID-19 pandemic. Within the firm’s quarterly earnings report immediately, The RealReal introduced layoffs affecting 10% of its workforce and furloughs impacting 15% of staff.
By doing so, The RealReal says it is going to be in a position to cut back its working bills by about $70 million. In a press launch, The RealReal mentioned these modifications are designed to “help its staff by the pandemic and make sure the group is properly positioned for a robust restart on the opposite facet of this well being disaster.”
These furloughed embrace staff in The RealReal’s e-commerce facilities, retail shops, luxurious consignment places of work, gross sales group and headquarters. The RealReal has additionally instituted a hiring freeze and lowered the salaries of executives.
The RealReal, which has been a public firm for rather less than one 12 months, joins the rising variety of tech corporations which have made personnel modifications within the wake of the coronavirus.
“Given the unknown length of the pandemic, we’ve centered on lowering working bills and preserving liquidity to climate the near-term challenges and guarantee we’re properly positioned to capitalize on the numerous alternative in entrance of us,” The RealReal CEO Julie Wainwright mentioned in a press release. “I’m assured the energy of our steadiness sheet, buyer satisfaction, wholesome visitors tendencies, and purchaser and consignor repeat charges, together with persevering with progress in expertise initiatives that help effectively scaling our operations, will place us to bounce again shortly as soon as the economic system stabilizes.”