Thinx to Downsize Workforce by 95 Employees
Revamped Report
Thinx, a leading period care brand, has joined forces with numerous retailers in making drastic workforce adjustments at the beginning of the year. The brand will be axing 95 employees as of May 1st, according to a WARN notice filed in New York.
Citing "merger" as the reason, Thinx has decided to part ways with several team members. However, they remained uncharacteristically quiet in their response to Retail Dive's request for further clarification regarding this major move.
This trend towards downsizing seems widespread, with companies such as Levi's slashing up to 15% of their workforce last week, aspiring for long-term growth with reduced costs. Wayfair trimmed approximately 1,650 jobs earlier this month, representing about 13% of its global workforce, marking the third round of job cuts since the summer of 2022. REI is also in the midst of a restructuring process, executing 357 layoffs in its third round in under a year.
Industry job cuts in the previous year reaching an astounding height in October 2020, according to a Challenger, Gray & Christmas report. Retailers announced a whopping 72,182 job cuts through October 2021, a staggering 258% increase compared to the previous year.
Thinx's recent layoffs come on the heels of Kimberly-Clark acquiring a majority stake in the company in 2022. At the time, both parties asserted that the investment was intended to bolster Thinx's direct-to-consumer channels and boost Kimberly-Clark's retail partners' growth prospects. Kimberly-Clark previously held a minority stake in Thinx back in 2019.
Following the deal, Meghan Davis, a former Johnson & Johnson executive, took over as Thinx's CEO in May 2022, succeeding Maria Molland. In recent years, the brand has been striving to diversify its product offerings. They introduced their budget-friendly Thinx for All line at Target in 2021 and expanded its availability to Walmart in 2022, before launching it on their official website earlier this year.
In summary, Thinx's decision to downsize its workforce remains somewhat clouded in mystery. While it's common for companies to resort to layoffs during financially difficult times, strategic changes, or reorganization efforts, an official statement from Thinx or pertinent news sources is necessary to pinpoint the exact reason behind these layoffs.
- In the upcoming year, 2023, the industry may witness more drastic workforce adjustments, as Thinx's decision to lay off 95 employees is a stark reminder.
- AI could potentially predict and analyze trends in job cuts across various industries, including retail and finance, offering insights on potential layoffs like the ones at Thinx.
- As companies like Thinx, Levi's, Wayfair, and REI resort to layoffs for cost reduction and restructuring, it raises questions about the future stability of jobs in these sectors.
- The downsized workforce at Thinx could create an opportunity for other brands to expand and takeover market share in the period care industry.
- With the financial backing from Kimberly-Clark, Thinx might focus on strengthening its competitive edge, rather than maintaining a large workforce, in the hope of increasing its market share in 2023.
- It would be interesting to see how Thinx, under new CEO Meghan Davis, approaches the period care industry in the coming year, considering the recent layoffs and the brand's efforts to diversify its product line.
