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Walmart's Bonobos to slash jobs amid e-commerce losses

Walmart Inc.'s men's apparel brand Bonobos Inc. is laying off "a few dozen" employees in a bid to curb losses in its parent company's e-commerce division, The Wall Street Journal reported Oct. 7, citing a Bonobos spokesperson.

"These decisions are not taken lightly, but we believe they are necessary to set the brand and business up for long term success," the spokesperson reportedly said.

Walmart acquired Bonobos for $310 million in 2017 as an addition to its expanding portfolio of e-commerce brands.

Earlier this year, Walmart had said it expects losses in its e-commerce division to be higher this year than the previous one. The Bentonville, Ark.-based retailer has been shoring up expenditures on e-commerce, including grocery delivery, but most of its profit still comes from physical stores, the WSJ said.

Walmart made a number of e-commerce acquisitions since it bought startup shopping platform Jet.com for $3.3 billion in 2016 in a bid to diversify its online offerings. The retailer also bought women's fashion brand ModCloth in 2017, as well as women's plus-size brand Eloquii in 2018. The company sold ModCloth to Go Global Retail earlier this month for an undisclosed amount.

Walmart and Bonobos did not immediately respond to S&P Global Market Intelligence's requests for comment.