Wayfair to cut 1,750 jobs across its global workforce
Furniture retailer Wayfair has announced plans to cut around 1,750 jobs, or 10% of its global workforce, as it looks to reorganise its business and become more agile.
Forming part of the company’s $1.4 billion cost cutting drive announced in August, the cuts will include 1,200 corporate roles to help eliminate management layers.
Niraj Shah, chief executive, co-founder and co-chairman of Wayfair, 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.
“In hindsight, similar to our technology peers, we scaled our spend too quickly over the last few years. The good news for Wayfair is that we have operated in a highly productive and efficient way for the vast majority of our 20 year history, and we are now simply returning to that.”
Including 870 job cuts made in August, Wayfair said the labour portion of the plan represents around $750 million worth of cost savings.
Wayfair has also announced that year-on-year gross revenue improved in December.
Shah added: “We are encouraged by our recent topline performance and in particular the momentum in orders. Our market share continues to improve as our core offering strengthens across key dimensions such as availability, speed, and price.”
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