Walmart-owned men’s retailer Bonobos laid off staff on Monday (Oct. 7) in the light of continued losses by its parent company.
The Wall Street Journal is reporting that a few dozen are being laid off in the company, which has about 600 employees.
“These decisions are not taken lightly, but we believe they are necessary to set the brand and business up for long term success,” a spokeswoman said. The decision for the layoffs came from Bonobos, she said.
Walmart bought Bonobos for $310 million in 2017. It started online and soon added stores where people could go and try on clothes and then place orders for them to be delivered.
Walmart’s eCommerce acquisitions have been struggling, and the company has been spending heavily to see eventual profits. It’s especially spent a lot on ramping up its delivery service. A large majority of the company’s profits come from its traditional brick and mortar stores.
Walmart has a few eCommerce properties, like Jet.com, which it bought in 2016. In 2017, the retail giant bought ModCloth and Moosejaw, and outdoor retail company. In 2018, it bought Elloqui, a plus-size women’s fashion brand.
Walmart has begun the process of letting go of some of those acquisitions, and earlier in the year it folded Jet.com into already existing operations. Modcloth was recently sold as well, to Go Global Retail.
“We believe that together with current management, ModCloth has the ability to become a stronger player in the premium fashion market, nationally as well as internationally,” Go Global’s Managing Director Jeff Streader said in a press release. “Our team of experienced retail and brand practitioners will supplement existing management in areas of digital strategy, supply chain and operations,” added Christian Feuer, managing director, of Go Global.
Walmart wants to also get rid of Jetblack, a personal shopping service, which reportedly loses around $15,000 per each member annually.