On March 27, 2020, Everlane laid off 227 employees, a significant portion of its workforce. This move reflects the company's response to challenging economic conditions.
Headquartered in the SF Bay Area, Everlane operates in the retail industry. The layoffs highlight the broader struggles faced by retail companies during economic downturns.
Everlane decided to lay off 227 employees due to the significant impact of the COVID-19 pandemic on its business operations, including the temporary closure of retail stores and depressed online sales. The layoffs were deemed necessary to ensure the company's long-term viability.
"This is the most difficult decision I have ever made as a leader," Preysman wrote in the memo. "Each of these individuals has contributed meaningfully to Everlane and we are doing everything we can to support them with the resources we have available. During this phase, while stores remain closed and online sales depressed, I am taking my salary to zero and our senior leadership is reducing their salaries by 25 percent."
Everlane's CEO, Michael Preysman, emphasized the gravity of the decision and the company's commitment to supporting affected employees. The layoffs were a direct response to the financial strain caused by the COVID-19 pandemic, which led to the closure of retail stores and a significant drop in online sales. By reducing his own salary to zero and cutting senior leadership salaries, Preysman aimed to demonstrate solidarity and a shared sacrifice during these challenging times.
The reduction of 227 employees at Everlane has significantly impacted its workforce, particularly affecting remote "customer experience" workers who were in the process of unionizing. This downsizing has likely strained the company's operations, especially in customer service and support roles.
In the broader retail industry, several companies have also announced layoffs recently. For instance, J.Crew and Neiman Marcus have both faced similar challenges, reflecting a trend of workforce reductions amid economic uncertainties.
The layoffs at Everlane signify a pivotal moment for the company's future, indicating a need for strategic adjustments to navigate ongoing economic challenges.
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