Wayfair, an online home goods retailer, announced today it was cutting about 900 jobs as a way to refocus investment needs and meet the company’s ongoing needs. This comes after the company announced a freezing of work still in May.
The layoffs represent about 5% of the company’s global workforce and 10% of its corporate team, according to SEC filings. 400 jobs are being cut at the company’s headquarters in Boston.
“We were seeing the tailwinds of the pandemic accelerating the adoption of e-commerce purchases, and I made a personal effort to hire a strong team to support that growth,” said Niraj Shah, the company’s founder and CEO. memorandum employees. “This year, that growth did not materialize as we expected. Our team is too big for the environment we’re in now and unfortunately we have to adapt.”
It’s unclear which teams in particular were affected by the cuts. TechCrunch reached out to Wayfair but was referred to a company memo.
Those released will receive a severance package based on geography and tenure. According to the company, US-based employees will receive a minimum of 10 paid weeks in addition to other resources such as outplacement services.
The Boston-based company said it expects layoffs to cost between $30 million and $40 million, mostly made up of layoffs. The hit will be reflected in the company’s current quarter, according to an SEC filing.
“We are actively navigating Wayfair to a level of profitability that will allow us to control our destiny while aggressively investing in the future,” Shah said. “We have prioritized our work and set clear goals to focus on the fundamentals, drive cost efficiencies and earn more customer and supplier loyalty. This macro environment does not change our belief in the size of the opportunity ahead and we are moving purposefully to take advantage of that opportunity.”
During the first two years of the COVID-19 pandemic, the company was profitable and it was reflected in its stock but has since taken a hit. Agreed The Wall Street JournalWayfair stock was down more than 17% Friday morning.