Rent the Runway, Inc.

5. 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).

RENT THE RUNWAY, INC.Notes to Consolidated Financial Statements

Restructuring charges of$0.2 million and $2.0 million for severance and related costs were recognized during the years ended January 31,2025 and 2024, respectively, and are reflected in Restructuring charges on the Company’s Consolidated Statements of Operations. Cumulative charges related to severance and related costs incurred to date in connection with the January 2024 restructuring plan were$2.2 million. Accrued restructuring charges were none and$0.2 million as of January 31, 2026 and 2025, respectively.

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. The restructuring plan was completed during the first quarter of fiscal year 2025.