US: Everlane chooses layoffs to boost profitability - Did it affect how the company is seen?
In a bid to improve profitability amid macroeconomic pressures, clothing retailer Everlane is laying off 17% of its corporate employees and under 3% of its retail workforce. While the company notes that its “strategy and its initiatives have not shifted”, the move is an effort that helps “right-sizing teams across several departments and at select retail locations.”
Do people see Everlane any differently as an employer since the news broke?
According to BrandIndex - which tracks consumer sentiment towards thousands of brands daily - there hasn't been a lot of change. Everlane's Reputation metric - which checks whether consumers would be proud or embarrassed to work for the brand - ultimately didn’t see much change a week from the announcement.
The layoffs were announced on 6 January 2023. On that day, the net score was 2 before dipping to zero on 9 January. It has since recovered and is back at around previous levels (2) on 11 January.
Everlane’s Index score - which is an overall measure of brand health made up of General Impression, Customer Satisfaction, Quality, Value, Corporate Reputation and Recommendation scores for the brand - has dropped by a point since the layoffs were announced and is at 2 (11 January 2023).
At the start of the year, the Index score was 3 and the Reputation score was 5.
Explore our living data - for free
Discover more retail content here
Want to run your own research? Run a survey now
Make smarter business decisions with better intelligence. Understand exactly what your audience is thinking by leveraging our panel of 20 million+ members. Speak with us today.
Methodology: YouGov BrandIndex collects data on thousands of brands every day. Index score is an overall measure of brand health, made up of General Impression, Customer Satisfaction, Quality, Value, Corporate Reputation and Recommendation and delivered as a net score between -100 and +100. Its Reputation score is based on the question: Imagine that you were looking for a job (or advising a friend looking for a job). Which of the following companies would you be proud to work for? Imagine you (or your friend) were applying for the same sort of role at the following companies that you currently have or would apply for./ Now which of the following companies would you be embarrassed to work for? Imagine you (or your friend) were applying for the same sort of role at the following companies that you currently have or would apply for, and delivered as a net score between -100 and +100. Scores are based on an average daily sample size of 364 US adults between 1 January 2023 and 11 January 2023. Figures are based on a three-day moving average. Learn more about BrandIndex.
on Freepik