Everlane announced internally it would lay off 17 percent of its 175 corporate employees as part of a cost-cutting measure to address market changes.
The direct-to-consumer apparel brand is also laying off employees at three stores.
In an employee e-mail attained by The InformationEverlane’s CEO Andrea O’Donnell said the decision was made to refocus its efforts to “right-sizing teams across several departments and at select retail locations.”
O’Donnell noted in the e-mail that the company’s “strategy and initiatives have not shifted,” and the layoffs were a result of market changes.
“It’s no secret that these are difficult times for venture-backed companies. The expectation to be profitable shifted overnight. My view has always been that layoffs are a last resort, so over the past year, we focused on cutting other large costs and driving efficiency before taking this step. While we continue to perform as a business and a brand, the inflationary environment and recessionary risk has created continued pressure. Today’s tough decision is intended to set us up to improve profitability in 2023,” said O’Donnell.
Everlane was last publicly valued at $550 million in September 2020, when it raised $85 million in funding in a deal led by private equity firm L Catterton.
The company’s job cuts come just months after it secured $65 million in revolving credit from CIT Northbridge and a $25 million loan from Gordon Brothers to open more stores and develop new products.