Wayfair is cutting about 13% of its global workforce, affecting approximately 1,650 employees, the company announced Friday.
The e-commerce home goods retailer said it expects the restructuring plan, which started in August 2022, to save more than $280 million. At the end of 2022, the company employed 17,505 workers, according to a March 2023 proxy statement.
“The changes announced today reflect a return to our core principles on resource allocation, such as getting fit on spans and layers as well as focusing on our highest priorities,” Wayfair CEO Niraj Shah said in a statement.
The layoffs come a month after Shah, in an email to employees, implored them to work harder, saying, “There is not a lot of history of laziness being rewarded with success.”
MACY’S TO SLASH 2,350 JOBS, CLOSE 5 STORES
Shares of the retailer climbed more than 15% in premarket trading.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| W | WAYFAIR INC. | 53.53 | -1.25 | -2.28% |
HASBRO CUTTING 1,100 JOBS AS TOY SALES SLOW
Wayfair said in January 2023 that it would cut 10% of its workforce, or about 1,750 jobs.
Other retailers, including Macy’s, Hasbro and Etsy, recently announced workforce reduction plans. Macy’s said Thursday it will slash 2,350 jobs and close five stores. Hasbro said in December it will cut 1,100 jobs after facing back-to-back quarters of falling toy sales. Also in December, Etsy said it will cut 225 jobs, or 11% of its workforce, citing a challenging economy.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| M | MACY’S INC. | 18.73 | +0.58 | +3.19% |
| HAS | HASBRO INC. | 49.61 | +1.49 | +3.10% |
| ETSY | ETSY INC. | 67.77 | -0.55 | -0.81% |
ETSY WILL LAY OFF 11% OF ITS WORKFORCE, STOCK FALLS
Wayfair expects to incur costs between $70 million and $80 million related to employee severance and benefit costs.
The company will release quarterly results in February.
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