Wayfair Plans To Slash 1,750 Jobs
- Wayfair Inc (NYSE: W) revealed a reduction of approximately 1,750 employees, representing 10% of its global workforce as of Dec. 31, 2022. This includes approximately 1,200 or 18% of corporate employees.
- Inclusive of the August 2022 restructuring, the labor portion of the plan represents approximately $750 million in annualized cost savings, with the steps essential to realize these savings now complete.
- "In hindsight, similar to our technology peers, we scaled our spend too quickly over the last few years," said Niraj Shah, CEO, co-founder, and co-chairman, Wayfair.
- As a result of the workforce reduction, Wayfair expects to incur $68 million - $78 million of costs, most of which are expected to be incurred in 1Q23.
- Wayfair benefitted from the COVID-19 pandemic restrictions as people stayed at home and started ordering items in large numbers from the online home store. This led to the company recruiting staff aggressively to expand its warehouse operations and customer-service teams.
- The company had 16,681 full-time equivalent employees as of Dec. 31, 2021, versus 12,124 full-time equivalent employees as of Dec. 31, 2018.
- The number of active customers reached 22.6 million as of Sept. 30, 2022, a 22.6% decrease Y/Y.
- Wayfair now expects to reach its adjusted EBITDA breakeven commitment earlier in 2023 as the first step toward its goal of generating sustainable positive free cash flow.
- With the latest jobs cut, Wayfair has joined a list of companies, including tech giants, Microsoft Corp (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN).
- Also Read: Google To Fire 12K Employees Worldwide; Extends Support Packages
- Price Action: W shares are trading higher by 6.81% at $41.56 in premarket on the last check Friday.
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