Wayfair cuts nearly 900 jobs, 5% of its worldwide workforce, amid sales decline
Wayfair announced on Friday that it is laying off nearly 900 employees, or 5% of its workforce worldwide.
The Boston home goods company is cutting about 870 jobs. Wayfair reported a 55% sales growth in 2020, as people moved to school and work from home at the start of the ongoing coronavirus pandemic and required more furniture and other goods. But last year, Wayfair sales declined 3.1%.
In a letter to employees on Friday, Wayfair CEO Niraj Shah said “Our team is too large for the environment we are now in, and unfortunately we need to adjust.”
“I take responsibility for the impact this decision will have on the nearly 900 Wayfairians who will be told today they are no longer a part of building our company’s future,” he said, adding that the company is focused on “thinning out management layers,” in addition to other steps.
The company’s costs related to the cuts is expected to be between $30 million and $40 million in the third quarter, mostly made up of employee severance and benefits.
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Wayfair is not the only company that has chosen to cut employees recently. Shopify last month announced that it was cutting 10% of its staff, or about 1,000 employees. Netflix, Microsoft and Paypal have also rolled out layoffs and hiring freezes in anticipation of a downturn in the economy.
Netflix in June confirmed to USA TODAY that it would lay off about 300 employees, its second round of layoffs this year.
Wayfair shares fell 13% during Friday morning trading.
Contributing: Brett Molina, Associated Press
This article originally appeared on USA TODAY: Wayfair, Boston furniture giant, lays off 900, stocks tumble
