Wayfair is cutting about 870 employees, or 5% 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% 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%.
Wayfair Inc. expects costs related to the job cuts to run between $30 million and $40 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 labor costs as well.
Shares tumbled 13% in Friday morning trading.