The RealReal, industry leader in authenticated luxury consignment, has become the latest technology company to furlough and lay off employees amid the coronavirus pandemic. The company is known for marketing consigned watches, fine art, fine jewelry, clothing, and home décor.
The recent announcement will reportedly impact 10% of its workforce due to lay off as well as 15% of employees due to the furloughs, as per the information reported in the company’s quarterly earnings. Through this initiative during the economic crisis, the company will be able to reduce the operating expenses by nearly $70 million. These changes have been reportedly designed to support the existing employees during the pandemic as well as ensure the team is well-positioned to effectively restart the business operations following the end of the ongoing health crisis.
The employees who have been recently furloughed are from the company’s headquarters, sales organizations, luxury consignment offices, retail stores, and e-Commerce centers. The company has also halted the hiring process of new employees as well as involved in the cost-cutting strategy by deducting the salaries of the executives.
The RealReal, which became a public company nearly a year back, has become a part of the rising number of tech companies that are engaged in personnel changes in the wake of COVID-19 pandemic.
According to Julie Wainwright, Chief Executive Officer of the RealReal, the company is focusing on preserving liquidity and reducing operating expenses. This can help endure the near-term challenges and ensure that it is well-equipped to capitalize on the opportunities in years ahead. It firmly believes that the strength of its balance sheet, buyer and consignor repeat rates, healthy traffic trends, customer satisfaction as well as the continuous advancements in technology will help it bounce back easily and efficiently scale the business operation once the economy stabilizes.