Bonobos Cuts Jobs After Push From Parent Company Walmart
Men's apparel retailer Bonobos, which is owned by Walmart, announced earlier this week that it laid off dozens of employees following a push from Walmart to cut its e-commerce losses, reports The Wall Street Journal. Walmart acquired Bonobos in 2017, but the brand is still not profitable for the retail giant, even after its expansion into physical stores. Bonobos employs roughly 600 people. Exact details regarding the layoffs haven't been released, including whether the cut roles were corporate or retail positions.
Total Retail's Take: Walmart has made several acquisitions of digital-native brands in the past two years to beef up its e-commerce business, but to date those moves haven't yet led to profitability in the channel. The additions of e-commerce brands such as Jet.com, ELOQUII, Bare Necessities, Bonobos, and Art.com have not been enough to keep Walmart's online division out of the red. The retailer announced this week it is selling off women’s clothing company ModCloth just two years after acquiring it. Hopefully the layoffs at Bonobos don't foreshadow a similar future for the men's apparel brand. Walmart's physical locations are as profitable as ever, but the company may be taking on too much at once in its attempts to compete with Amazon.com. Acquisitions require detailed strategy to successfully integrate two companies and turn profit, and Walmart seems to be struggling with its inundation of e-commerce brands.