Wayfair cuts 1,750 jobs

US-based home retailer Wayfair is to cut 1,750 jobs or around 10 per cent of its global workforce, the company has announced.

The measures are part of $1.4 billion cost cutting measures to reduce operating cost as demand weakens.

Around 1,200 of the jobs cut are corporate positions and account for about 18 per cent of corporate employees. Wayfair said that the cuts demonstrate its plans to minimise management layers and become more agile.

The company, which axed 870 roles in August 2022, said that the latest cuts will save the firm around $750 million annually.

Reducing its workforce will cost Wayfair between $68 million and $78 million in severance and benefit costs, with the company expecting to incur these in the first quarter of 2023.

Commenting on the news Niraj Shah, chief executive and co-founder of Wayfair, said: “Although difficult, these are important decisions to get back to our 20-year roots as a focused, lean company premised on high ambitions and great execution.”

He added: “The changes announced today strengthen our future without reducing our total addressable market, our strategic objectives, or our ability to deliver them over time.”

Shah admitted that the business had scaled its spending too quickly over the past few years, comparing Wayfair to tech companies who had made the same mistake.

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