Everlane is the latest direct-to-consumer retailer to announce job cuts in an effort to improve profitability.
The apparel company announced the reduction of its corporate workforce by 17% in a Wednesday email to staff from the CEO, which was viewed by FN. In explaining the layoffs, the email cited inflation and recession fears and a desire to achieve profitability moving forward.
The Information first reported the cuts at Everlane.
Everlane is also reducing its retail team by less than 3% across various stores, the company confirmed. In total, the layoffs impact 8.6% of Everlane staff.
“This tough decision is intended to improve profitability in 2023 and continue our efforts to help leave the fashion industry cleaner than we found it,” the company said.
Laid off Everlane employees will receive at least four weeks of severance pay as well as healthcare and career support through January, the email to staff said.
The news comes as other e-commerce platforms announce similar reductions to staff. On Thursday, Stitch Fix cut close to 20% of salaried roles and its CEO Elizabeth Spaulding stepped down from her role. And on Wednesday, Amazon CEO Andy Jassy confirmed that the e-commerce giant would eliminate a total of 18,000 roles as the company grapples with an uncertain economic environment permeating tech and other industries. Salesforce also announced it would cut 10% of its staff this week after laying off hundreds of employees in November.
Everlane launched online-only in November 2011 with an ethical manufacturing approach and a “radical transparency” model that immediately set it apart from other luxury brands. The company opened its first stores in 2017 and currently operates 11 stores. In September, Everlane secured $65 million in revolving credit from CIT Northbridge. In late November, the company secured a $25 million loan from Gordon Brothers to “support over a decade of continued growth.”