Wayfair Announces Plans to Cut 870 Jobs
Online furniture retailer Wayfair has announced plans to cut around 870 jobs, approximately 5% of its global workforce, as it looks to trim operating expenses.
A number of furniture retailers have reported weaker sales in recent earnings reports, as US households spend more cautiously in the face of soaring inflation. Wayfair reported a larger-than-expected second-quarter loss earlier this month, with rivals Restoration Hardware and Target also reporting a drop in earnings.
On top of reduced demand as consumers stay away from big-ticket items, global supply chain issues and rising fuel prices have placed additional stress on the sector. Sales figures mark a sharp contrast to the previous year, with Covid-19 lockdowns prompting increased spending on household items such as furniture.
Wayfair’s share price dropped sharply when the news broke, with the stock falling 17% to $59.24 in midday trading on the New York Stock Exchange.
Wayfair said the costs of the layoffs would be between $30 million and $40 million, with the bulk of the expenses made up of employee severance and benefit payments. The majority of these costs are expected in the third quarter.