Away said layoffs will impact 25% of its internal staff, Retail Dive first reported Feb. 14. The retailer did not share how many total employees it has.
The direct-to-consumer luggage brand is undergoing a larger restructuring that also includes “the elimination of a traditional executive team structure,” according to a statement shared with Retail Dive.
Staffing changes were made because “the team recognizes the need for a more nimble approach amidst the changing consumer landscape,” according to the statement.
“We’re reconfiguring the traditional exec team structure in order to promote better decision-making,” CEO Jen Rubio told Inc. “What I think this is doing is setting us up to be able to grow the right teams to work on the right projects.”
“Disruption has always been at the core of our company’s DNA,” the spokesperson said in a statement. “Away is dedicated to delivering the highest-quality travel products and experiences to our customers, and we believe that these steps will better position us to continue to be an innovative leader in the category.”
Away is No. 391 in the Top 1000, Digital Commerce 360’s ranking of North America’s leading retailers by online sales.
Changes at Away
Away held an earlier round of layoffs in May 2023. At the time, it cut 22 employees, including chief commercial officer Laura Willensky.
In 2023, the retailer also expanded its executive team. It hired Carissa Barrett as vice president of retail. She previously worked at Byredo, Saint Laurent, and Prada (No. 187 in Digital Commerce 360’s Europe Database). At the same time, Away hired Amanda Brody as vice president of brand. Brody previously worked at L’Oreal (No. 17 in Europe) and Charlotte Tilbury.
In January 2023, Away brought on Carla Dunham as chief marketing officer with a mandate to increase marketing spending and capitalize on post-pandemic travel.
Away may have grown its executive team too quickly, Rubio told Inc.
“I was really proud that Away was able to attract people with such impressive accolades and such great experience,” she said. “Maybe I was in a little bit of a rush to have the company grow up so quickly, and in the midst of that, we lost a little bit of the magic that got us here.”
Away’s possible sale
Away was exploring a potential sale in 2023, Bloomberg reported.
Rubio told Inc. that’s not the plan for 2024. However, “there has to be some plan on the horizon” for an IPO or acquisition eventually, she said.
This year, Away will focus on increasing the number of product launches and working with retailers on wholesale, according to Rubio.
Other online retail and ecommerce layoffs
Away joins other retailers and marketplaces in announcing recent layoffs. EBay plans to lay off 1,000 workers, 9% of its total workforce. EBay ranks No. 6 in Digital Commerce 360’s Global Online Marketplaces database. The database ranks the 100 largest such marketplaces by third-party GMV.
Macy’s, Amazon, and Wayfair also all cut their workforces in the first month of 2024. In addition, REI announced that it would lay off 357 employees, about 2.2% of the retailer’s total workforce, The Seattle Times reported.
Macy’s ranks No. 17 in the 2023 Digital Commerce 360 Top 1000. Amazon ranks No. 1, Wayfair ranks No. 10, and REI ranks No. 67.
Levi Strauss (No. 191) also said it would lay off 10% to 15% of its corporate workforce, and Estee Lauder (No. 43) will lay off 3% to 5%.
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