AP – Wayfair is cutting about 870 employees, or five per cent of its global workforce, as part of a plan previously announced by the home goods company to manage operating costs and realign its investment priorities after the pandemic.
With millions sheltering at home in 2020, the Boston company reported 55 per cent sales growth as families spent heavily to furnish living rooms and other parts of the house. Last year, as more people ventured out, sales at Wayfair declined 3.1 per cent.
Wayfair Inc expects costs related to the job cuts to run between USD30 million and USD40 million in the third quarter, mostly related to employee severance and benefits.
The company said that it’s also in the process of making substantial cuts to third party labour costs as well.
Shares tumbled 13 per cent on Friday morning trading.