Sustainable clothing brand Everlane is the latest direct-to-consumer company to slash jobs as the sector grapples with declining e-commerce sales volumes and rising digital marketing costs.
The company announced the cuts internally on Wednesday via an email message and a companywide Zoom meeting, saying they would affect around 17% of Everlane’s 175 corporate employees, as well as cutting jobs at three of its stores, according to a person directly familiar with the matter. The corporate layoffs were concentrated in customer service and creative teams, this person said.
Everlane was last publicly valued at $550 million in September 2020, when it raised $85 million in funding in a deal led by private equity firm L Catterton. In recent months, it has announced a number of debt refinancings and new lending arrangements, including a $25 million term loan secured in part by its brand in late November.
