Wayfair cutting 5% of global workforce
Job cuts represent 5% of Wayfair's global workforce
Wayfair Inc. is cutting hundreds of jobs as it seeks to become more profitable, the retailer said on Friday.
Approximately 870 jobs will be cut. This represents 5% of its global workforce and 10% of its corporate teams, the company said.
Wayfair CEO Niraj Shah told employees in a note Friday that he overestimated e-commerce growth in the home category and takes responsibility for the layoffs.
WALMART, ORACLE, ROBINHOOD LEAD JOB CUTS THIS WEEK
"We were seeing the tailwinds of the pandemic accelerate the adoption of ecommerce shopping, and I personally pushed hard to hire a strong team to support that growth," Shah said. "This year, that growth has not materialized as we had anticipated. Our team is too large for the environment we are now in, and unfortunately we need to adjust."
As part of its process to get back on track this fall, Shah said the company is thinning out management, better aligning its work with its strategic priorities and adjusting areas that have grown faster than its "current revenue trajectory can support."
Wayfair expects the layoffs to cost the company between about $30 million and $40 million for employee severance and benefit costs. It expects to incur these costs in the third quarter of 2022.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Earlier this month the Boston-based furniture giant reported a loss of $378 million in its second quarter.
CLICK HERE TO READ MORE ON FOX BUSINESS
The Associated Press contributed to this report.