Online retailer Wayfair ready to cut 1,650 jobs
Wayfair, the online furniture retailer, is set to cut approximately 1,650 jobs, which accounts for 13% of its global workforce.
The Boston-based company, with a warehouse in San Leandro and corporate offices in Mountain View, confirmed the layoffs on Friday. The move is part of a restructuring plan that includes reducing team sizes companywide and adjusting seniority in specific roles.
In a memo to employees on Friday, CEO and cofounder Niraj Shah partially blamed over-hiring during the COVID-19 pandemic.
“The natural question is to ask ‘Why? ’ ” he wrote. “I think the reality is that we went overboard in hiring during a strong economic period and veered away from our core principles, and while we have come quite far back to them, we are not quite there.”
This announcement follows Macy’s decision to lay off approximately 3.5% of its workforce, about 2,350 employees, and close five department stores, including one at the Bayfair Mall in San Leandro.
This is not the first time Wayfair has implemented mass layoffs. In January 2023, the company cut 1,750 jobs, amounting to 10% of its global workforce, following previous cuts of 870 jobs in August 2022 and 550 jobs in 2020.
Shah said the latest layoffs will result in annualized cost savings exceeding $280 million after restructuring costs of about $70 million to $80 million, primarily allocated to employee severance and benefits in the first quarter of 2024.
The layoffs come a month after Shah made headlines for encouraging employees to work long hours and prioritize work over a work/life balance.
“Winning requires hard work,” he said in a note to employees before the holidays. “I believe that most of us, being ambitious individuals, find fulfillment in the joy of seeing our efforts materialize into tangible results. Working long hours, being responsive, blending work and life, is not anything to shy away from. There is not a lot of history of laziness being rewarded with success.”
The company did not specify how many employees in the Bay Area will be impacted by the cuts. The Chronicle has submitted a WARN notice request to the California Employment Development Department.
Wayfair’s shares rose more than 7% Friday after the announcement.