Amazon, Gap and Other Companies Laying Off Staff Amid the Economic Downturn

Shoshy Ciment
·6 min read

As the U.S. economy suffers, layoffs and hiring freezes are ripping through various industries.

In the wake of the downturn, companies across tech, retail, media have announced efforts to restructure their organizations and let employees go to cut costs. Just last week, Meta announced that it would lay off 13% of its staff, or more than 11,000 employees. And shortly after taking the reigns of Twitter, Elon Musk laid off half of the staff at Twitter earlier this month.

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Here’s a running list of the major layoffs announced across the retail industry.

Allbirds

In late July, Allbirds laid off 23 people.

“We have thoughtfully evaluated roles and processes in each department, and in each market, to ensure our operating structure is set-up for the next phase of growth,” an Allbirds spokesperson said in a statement. “In this process, we looked for ways to streamline workflows, reduce duplicative efforts, and put past learnings and operational insights into practice.

Amazon

Amazon said it would lay off about 10,000 employees in corporate and technology roles beginning in November, according to a report from The New York Times. According to the report, this layoff is impacting the company’s devices organization, retail division and human resources department.

Bed Bath & Beyond

Bed Bath & Beyond announced a series of strategic changes to improve its business on Aug. 31. Part of this includes layoffs and store closures.

The company shared that these cost optimization efforts would include a reduction in force, which will include about a 20% reduction across corporate and supply chain roles. The company has also begun to close about 150 lower-performing stores.

Foot Locker

Foot Locker in October confirmed it was closing a distribution center in Wausau, Wisconsin and laying off 210 employees.

A Foot Locker spokesperson said the closure represents the company’s “efforts to optimize our U.S. distribution network to serve our customers nationwide more efficiently and effectively.”

Gap Inc.

Gap Inc. confirmed in September that it was cutting 500 corporate roles. The job cuts will mostly impact the retailer’s offices in San Fransisco and New York, as well as in Asia, and will represent a combination of layoffs and the elimination of certain open roles.

Nordstrom

Nordstrom in September confirmed it would lay off more than 200 employees in a fulfillment center in Cedar Rapids, Iowa in October.

“We have made the difficult decision to reduce our workforce at our Midwest fulfillment center in order to better align with the current needs of our business,” a company spokesperson said in a statement. “We recognize the impact these changes have on our team members and are committed to taking care of our people as we work through this transition.”

Peloton

The connected fitness company laid off another 500 people in October, the latest round of layoffs for the company battling rising costs and a slowdown in demand as more people return to gyms and live classes.

PVH Corp.

The company on Aug. 30 reported its second quarter results and announced plans to “reduce people costs” in its global offices by approximately 10% by the end of 2023. The company said it expects these reductions will generate annual cost savings of over $100 million.

CFO Zac Coughlin said in a statement that the cuts were being made to “increase productivity” and “reinvest strategically” in digital, supply chain and consumer engagement.

Rent the Runway

Rent the Runway in September said it would lay off about a quarter of its staff after the New York-based fashion rental company reported a net loss $33.9 million in the second quarter of fiscal year 2022.

The company described the move as a restructuring plan aimed at reducing costs in order to “streamline its organizational structure” and “drive operational efficiencies.”

Rocky Brands Inc.

Rocky Brands Inc. in June announced a round of layoffs stemming from its 2021 acquisition of five boot brands from Honeywell International Inc.

The Nelsonville, Ohio-based company bought the performance and lifestyle footwear business from Honeywell for $230 million in a cash-and-debt deal that was completed in March 2021. The portfolio included The Original Muck Boot Company, as well as the Xtratuf, Servus, Neos and Ranger brands.

After conducting a cost-savings review of the group, Rocky Brands said it identified several “operational synergies and cost saving opportunities,” including closing the Boston offices that it gained in the acquisition and reducing the non-manufacturing headcount at the acquired brands by approximately 13%.

Shopify

Shopify in July laid off 10% of its staff.

In a letter to employees, co-founder and CEO Tobi Lütke said most of the impacted roles were in recruiting, support, and sales. Over-specialized and duplicate roles, as well as some groups that were “convenient to have but too far removed from building products” were also affected.

The layoffs came as the pandemic-era online shopping boom slows. Lütke said he was wrong on his projections for continued e-commerce demand.

Snap

Snap is laying off about 20% of its staff of more than 6,400 employees, the company announced on Aug. 31.

“The scale of these changes vary from team to team, depending upon the level of prioritization and investment needed to execute against our strategic priorities,” Snap Inc. CEO Evan Spiegel wrote in a note to Snap Inc. employees on Aug. 31. “The extent of this reduction should substantially reduce the risk of ever having to do this again, while balancing our desire to invest in our long term future and reaccelerate our revenue growth.”

StockX

StockX underwent rounds of layoffs in June and October.

In June, StockX laid off 8% of its workforce. The resale platform’s CEO Scott Cutler announced the layoffs to employees in an email, which said the company had taken measures to reduce costs by prioritizing existing investments, reducing discretionary expenses, placing limits on new hires and improving efficiency in the company’s trade process.

The company laid off employees again in November.

ThredUp

ThredUp co-founder and CEO James Reinhart said on Aug. 15 that the resale platform would lay off about 15% of its corporate workforce and shutter one of its processing centers.

These cost cutting measures are being taken due to the deteriorating consumer health seen in recent months as inflation puts a damper on spending.

VF Corp.

VF Corporation on Aug. 30 confirmed it was cutting 600 office-based roles, which will impact 300 current workers and 300 open roles.

Steve Rendle, the president and CEO of the company that owns Vans, The North Face and Timberland, announced the layoffs in a letter to employees, according to a report from Denver Business Journal. In the letter, Rendle reportedly said the cuts were meant “to align our people and capabilities with our highest strategic priorities.”

VF declined to comment to FN but confirmed the accuracy of Denver Business Journal’s report.

Walmart

Walmart in early August confirmed it was cutting jobs as the company updates its structure and evolves certain roles “to provide clarity and better position the company for a strong future,” a spokesperson said.

The retailer will cut hundreds of corporate roles, according the The Wall Street Journal, which first reported the news.

The news came about a week after the big-box retailer slashed its outlook for Q2 as consumer spending softened, especially in discretionary categories like apparel.

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