Wayfair, the online home goods retailer, has laid off nearly 900 employees as a way to prioritize investment needs and meet the current needs of the company. This comes after the company announced a paused contract back in may.
The layoffs represent about 5% of the company's global workforce and 10% of its corporate teamAccording SEC filings. 400 jobs are being cut in Boston, at the company's headquarters.
Those laid off will receive a severance package based on geography and tenure. According to the company, US-based employees will receive a minimum of 10 weeks pay in addition to other resources, such as relocation services.
The Boston-based company said it expects layoff costs to be between $30 million and $40 million., mainly made up of severance pay for employees. According to the SEC filing, the hit will be reflected in the company's current quarter.
“We are actively navigating Wayfair towards a level of profitability that will allow us to control our own destiny, while continuing to invest aggressively in the future”said its CEO. “We have prioritized our work and set clear objectives: focus on the basics, drive profitability and win more customer and supplier loyalty. This macro environment does not change our belief in the size of the opportunity that lies ahead, and we are moving with determination to seize that opportunity." During the first two years of the COVID-19 pandemic, the company was profitable and this was reflected in its shares, but since then it has been hit hard.
