Home » UK Employment news » Wayfair announces 1,750 job cuts to save $1.4 billion

Wayfair announces 1,750 job cuts to save $1.4 billion

By Nagasunder in UK Employment news, posted January 23, 2023

Wayfair has revealed it will cut 1,750 positions, or 10 percent of its whole global workforce, as part of a $1.4 billion cost-cutting plan.

The online retailer says it needs to decrease operational expenses in the face of weaker demand for furniture.

The measures taken by the company include laying off 1,200 corporate workers, and an 18 percent workforce reduction.

The online retailer claimed that the cost reductions from the restructuring, which included the 870 job cuts in August of last year, amount to $750 million annually.

Wayfair chief executive and co-chairman Niraj Shah said: “Although difficult, these are important decisions to get back to our 20-year roots as a focused, lean company premised on high ambitions and great execution.

“The changes announced today strengthen our future without reducing our total addressable market, our strategic objectives, or our ability to deliver them over time.”

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Shah noted that the company is "just reverting" to operating in a highly productive and efficient manner after scaling back its spending "too quickly" during the previous few years.

The company estimates that the personnel reduction will cost between $68 million and $78 million in the first quarter of 2023.

Source: Retail Gazette

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