Wayfair Inc. said it would cut 10% of its workforce, or about 1,750 people.
The company said on Jan. 20 that it plans to cut about 18% of the company’s workforce in a bid to eliminate senior management and increase agility. The move follows a hiring freeze announced in May.
Wayfair ranks #7 in the Top 1000 in the Digital Commerce 360 database of North America’s largest online retailers.
Impact of Wayfair job cuts
Wayfair’s cost-cutting initiatives will exceed $1.4 billion in annual cost action, the company said. The first step towards positive free cash flow is expected to be breakeven on an adjusted earnings basis before interest, tax, depreciation and amortization in early 2023.Stocks rose 5% early trading in New York at 7:25 a.m.
“Although difficult, these are important decisions to get back to our 20-year roots as a focused, lean company, subject to high ambition and excellent execution.” Like many of our industry peers, we have increased our spending too quickly in the last few years.”
The online home goods retailer has struggled with declining sales for more than a year after revenue surged during the early stages of the pandemic as U.S. shoppers spent fixing their homes. Wayfair’s stock has fallen about 75% over the past 12 months.
Wayfair layoffs add to the pain of workers in the tech and e-commerce sectors. On January 20, Alphabet announced it would cut 12,000 jobs worldwide. This week, Amazon.com and Microsoft have similarly started cutting 28,000 jobs.
The retailer ranks #7 on the 2022 Digital Commerce 360 Top 1000.
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