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Bonobos Cuts Jobs: Reports

bonobos oct08 lt

Bonobos, the menswear brand owned by Walmart Inc., is laying off staff, according to media reports. The job cuts are said to be part of Walmart's efforts to narrow losses at its unprofitable U.S. e-commerce unit.

According to reports citing a spokeswoman for Bonobos, the company is cutting "a few dozen" jobs. Bonobos has about 600 employees.

Founded in 2007, Bonobos was acquired by Walmart for $310 million in 2017.

The company started as an online retailer of men's pants, but later expanded its apparel line to include shirts and suits. It also opened brick-and-mortar shops for customers to try on clothes and place orders for delivery.

Walmart's Bonobos acquisition was part of the retail giant's purchases of online brands to bolster its e-commerce division. Walmart first acquired online shopping site Jet.com for more than $3 billion in 2016 in order to compete with e-commerce giant Amazon.

Jet.com was founded in 2014 by Marc Lore, who then became head of Walmart's e-commerce business. Under Lore, Walmart later acquired ModCloth and plus-sized online apparel retailer Eloquii.

In July, Vox reported that Walmart was anticipating a loss of more than $1 billion in its U.S. e-commerce division in fiscal 2019. Vox's Recode reported that the retail giant's e-commerce efforts were generating internal strains after it bought Jet.com.

The expected loss in the U.S. e-commerce division is huge for a company, which recorded around $7 billion in profit during the last year. Walmart had registered 40 percent e-commerce growth in 2018.

Last Friday. investor group Go Global Retail said it has agreed to acquire ModCloth. Financial terms of the deal were not disclosed.

Founded in 2002, ModCloth offers exclusive indie and vintage-inspired women's clothing, shoes, handbags and accessories for women aged 18 to 35 years.

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