- On Friday, Wayfair (W) announced it would be cutting 1,750 jobs, or 10% of its global workforce. This is the retail giant's second round of layoffs, following the 5% reduction in August 2022. Following the announcement, Wayfair's stock price increased more than 20%.
- Wayfair is providing its staff members with severance packages based on each individual's situation and has already begun downsizing in Europe. This restructuring process is expected to cost between $68-78M in employee severance and benefit payments.
- The leading online retailer, has announced a decrease in revenue of 9% year over year and a loss of $286M in the third quarter of 2022. In order to reduce costs, the company has cut back on advertising, insurance policies, janitorial services and software licenses in an effort to maximize their financial stability.
Why it matters
Since the start of the pandemic, many online furniture retailers have been forced to make adjustments due to decreasing demand for home furnishings. This has resulted in a reversal of earlier decisions to expand staffing, and many companies are now having to downsize.