Wayfair (NYSE: W) revealed it will be cutting almost 900 jobs, approximately 5% of its global workforce, as it strives to regain financial stability post-pandemic. According to the company, the cuts will help it “manage operating expenses and realign investment priorities.” Shares were down about 14% during early morning trading, following the news.
“We were seeing the tailwinds of the pandemic accelerate the adoption of e-commerce shopping, and I personally pushed hard to hire a strong team to support that growth,” Niraj Shah, Wayfair CEO and co-founder wrote. “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.”
Wayfair had prospered at the start of the pandemic when there was strong demand for furniture as well as home decor. Demand was so potent at the time, that supply chains were impacted causing lengthy delays. Now, roughly 400 of the job cuts will take place in Boston, the Boston Globe reported.
“During a difficult macroeconomic environment, we remain squarely focused on our customers and our suppliers, and on making sure Wayfair is their preferred platform for the Home,” Shah said in a statement after the report. “We are tightly controlling our many levers and steering Wayfair in a financially responsible manner through this period.”
Wayfair anticipates costs regarding the job cuts to range between USD30 Million and USD40 Million within the third quarter, amid employee severance and benefits.