Rent the Runway Inc

4. Restructuring and Related Charges

January 2024 Restructuring Plan

On January 9, 2024, the Company announced a restructuring plan to focus its workforce and cost structure on key growth opportunities and support its profitability goals. The plan included a reduction in workforce of approximately 10% of its corporate employees (primarily a reduction in force, with some open role closures/reduced backfills, and excludes potential hiring of new employees or other additions to the Company’s costs and expenses).

Restructuring charges of $2.0 million for severance and related costs were recognized during the year ended January 31, 2024 and are reflected in Restructuring charges on the Company’s Consolidated Statements of Operations. Accrued restructuring charges were $0.7 million as of January 31, 2024.

The Company recorded asset impairment charges of $1.1 million during the year ended January 31, 2024 related to the discontinuation of a software implementation project in connection with the January 2024 restructuring plan. The charge is reflected in Loss on asset impairment related to restructuring on the Company’s Consolidated Statements of Operations. The Company may incur additional restructuring charges in the future.

September 2022 Restructuring Plan

On September 12, 2022, the Company announced a restructuring plan to reduce costs, streamline its organizational structure and drive operational efficiencies. The plan primarily included total workforce reductions of approximately 24% of corporate employees (primarily a reduction in force, with some open role closures/reduced backfills), reorganizing certain functions and reallocating resources to continue to focus on customer experience and growth initiatives.

Restructuring charges of $2.4 million for severance and related costs were recognized during the year ended January 31, 2023 and are reflected in Restructuring charges on the Company’s Consolidated Statements of Operations. Accrued restructuring charges as of January 31, 2023 were immaterial.

RENT THE RUNWAY, INC.Notes to Consolidated Financial Statements

The Company recorded asset impairment charges of $5.3 million, which consisted of a $4.9 million write-off of fixed assets and a $0.4 million write-off of accrued expenses, during the year ended January 31, 2023, both related to the discontinuation oftwo warehouse operations projects in connection with the September 2022 restructuring plan. The charge is reflected in Loss on asset impairment related to restructuring on the Company’s Consolidated Statements of Operations.