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$0.2 million for severance and related costs were recognized during thethree months ended April 30, 2024 and are reflected in Restructuring charges on the Company’s Condensed Consolidated Statements of Operations. Restructuring charges of$2.0 million for severance and related costs were recognized during the year ended January 31, 2024 and were reflected in Restructuring charges on the Company’s Consolidated Statements of Operations. Accrued restructuring charges were$0.2 million and $0.7 million as of April 30, 2024 and January 31, 2024, respectively. The Company may incur additional restructuring charges in the future. The restructuring plan is expected to be fully completed by the end of the second quarter of fiscal year 2024.

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