Walmart Layoffs: Dozens Let Go At Its Bonobos Brand

After selling off its women’s indie-label ModCloth, Walmart (WMT) has made cuts to its staff at men’s apparel brand Bonobos. The online retailer falls under its e-commerce umbrella, which Walmart has been looking to restructure as it reportedly continues to remain unprofitable.

The layoffs came Monday and affected about a few dozen of Bonobos’ 600 employees, a source told The Wall Street Journal.

“These decisions are not taken lightly, but we believe they are necessary to set the brand and business up for long term success,” a Bonobos spokeswoman told the news outlet.

The decision to layoff the employees came from Bonobos, she added.

Walmart purchased Bonobos in 2017 for $310 million. It has been working to reduce its losses in its e-commerce business, which Bonobos is a part of and reportedly will see higher losses from the unit than it did the year before, the news outlet reported.

Walmart purchased several small brands after buying Jet in 2016, including Bonobos, Moosejaw, Elloqui, and ModCloth. It sold ModCloth for an undisclosed price to a Go Global Retail las week and has been considering opportunities to sell off, partner up, or spin-off its text-based concierge service, JetBlack, according to Bloomberg.

Shares of Walmart stock were up 0.08 percent as of 11:45 a.m. ET on Tuesday.