Online consignment company The RealReal is the latest tech company to lay off and furlough employees amid the COVID-19 pandemic. In the company’s quarterly earnings report today, The RealReal announced layoffs affecting 10% of its workforce and furloughs impacting 15% of employees.
By doing so, The RealReal says it will be able to reduce its operating expenses by about $70 million. In a press release, The RealReal said these changes are designed 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.”
Those furloughed include employees in The RealReal’s e-commerce centers, retail stores, luxury consignment offices, sales organization and headquarters. The RealReal has also instituted a hiring freeze and reduced the salaries of executives.
The RealReal, which has been a public company for a little under one year, joins the growing number of tech companies that have made personnel changes in the wake 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.”