Away Layoffs: What Happened & Why?

Away announced layoffs on April 7, 2020, affecting 60 employees, which represents 0.1% of its workforce.

Based in New York City, Away operates in the retail industry. The layoffs come amid challenging market conditions, impacting the company's overall strategy and operations.

Why did Away have Layoffs?

Away decided to lay off 60 employees due to a significant drop in sales caused by the COVID-19 pandemic, which led to a more than 90% reduction in sales of its travel products. The company initially tried to mitigate the financial impact by closing its retail stores and continuing to pay its retail staff, but this was insufficient.

• Severe Decline in Sales: The COVID-19 pandemic caused a near-total halt in travel, leading to a dramatic drop in sales of Away's luggage and travel accessories.
• Cost-Cutting Measures: Despite closing its retail stores and paying staff during the closures, the financial strain necessitated further workforce reductions.
• Leadership Decisions: Founders and senior leadership took salary reductions, with the founders suspending their own salaries to support the company's financial stability.

Company Statement

"This was a devastating decision and one we considered only as a last resort," say Korey and Rubio in their post.

The founders expressed their deep regret over the layoffs, emphasizing that the decision was made after exhausting all other options. The significant drop in sales due to the COVID-19 pandemic left the company with no choice but to implement these drastic measures to ensure its survival.

With travel nearly coming to a halt, sales of Away's luggage and travel accessories plummeted by over 90%. Despite initial efforts to mitigate the financial impact by closing retail stores, the company ultimately had to resort to furloughs and layoffs to manage costs effectively.

Impact on Workforce and Industry

The reduction of 60 employees at Away has significantly impacted its workforce, particularly in roles related to retail operations and customer service. This downsizing has strained the company's ability to maintain its usual level of service and operational efficiency.

In the broader retail industry, several companies have also announced layoffs recently. For instance, major retailers like Macy's and J.C. Penney have similarly reduced their workforce due to the economic downturn caused by the COVID-19 pandemic.

Looking Ahead

The layoffs at Away signify a critical juncture for the company, highlighting the need for strategic adjustments to navigate the post-pandemic market landscape.

• Focus on E-commerce: Away plans to enhance its online shopping experience to capture the growing trend of digital retail.
• Product Diversification: The company aims to expand its product line beyond travel accessories to include items suited for home and local travel.
• Operational Efficiency: Away is implementing cost-saving measures and streamlining operations to ensure long-term sustainability.

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