Bonobos Lays Off Employees During Walmart’s E-Commerce Strategy Shift

Bonobos Lays Off Employees During Walmart’s E-Commerce Strategy Shift

On the latest episode of the E-Commerce Retail Briefing podcast:

Walmart is making moves as they shift their e-commerce strategy. After recently acquiring several digitally-native brands that have yet to be profitable, the company is cutting back. The retailer sold ModCloth and now Walmart-owned Bonobos are laying off dozens of employees this week.

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Walmart-Owned Bonobos Makes Cuts To Staff

Walmart-owned, Bonobos, is making cuts to staff. The news comes on the heels of Walmart selling its other recently acquired digitally-native brand, ModCloth. According to the Wall Street Journal, Bonobos will be laying off a few dozen employees this week. A spokesperson from the company said, “these decisions are not taken lightly, but we believe they are necessary to set the brand and business up for long term success.”

While Walmart is staying quiet, the changes make it clear a new e-commerce strategy is being set in place. The retailer acquired Bonobos for $310 million a little over two years ago. The announcement came only months after the acquisition of ModCloth, which the company just sold to Go Global Retail. Walmart is also reportedly in talks to sell its concierge service, JetBlack. They were also said to be considering selling Bonobos but opted against it. The company’s online business is reportedly facing a $1 billion loss this year.

The new moves indicate Walmart is shifting away from its focus on growing e-commerce through acquired digitally-native brands.