Destination Maternity announces reduction in force

Destination Maternity Corporation has announced a reduction in force (RIF) that is expected to generate cost savings of 4 million dollars to 4.5 million dollars on an annualized run-rate basis. The company said, this reduction is part of the company’s effort to become a more efficient and profitable organization and that the RIF will primarily impact the company’s product pipeline teams.

“This reduction in force is a very difficult, but necessary step for the company,” said Lisa Gavales, Chair of the Office of the CEO in a statement, adding, “We are streamlining our teams, and sharpening our product offering to focus on the key items that are most important and relevant to our new moms and moms2be. While challenging, this is a critical step in helping to position the business as a more nimble and profitable organization in the future.”

The company added that the RIF is expected to result in a one-time severance charge of approximately 1.3 million dollars to 1.5 million dollars during the second quarter of 2019.