E-commerce

Wayfair slicing 5% of global workforce

Photo by istock.com

August 24, 2022

Home goods retailer WayFair is reducing its global workforce by 5%, about 900 jobs, in order to manage operating expenses and "realign investment priorities," according to a regulatory filing.

The move comes as retailers are still striving to regain sales and revenue after two years of the COVID-19 pandemic, according to a CNN report.

In a letter to employees, CEO Niraj Shah called the job cuts a "difficult decision."

"Broadly, the changes we're making fall into three categories: 1) thinning out management layers to enable team members to focus on execution, 2) aligning our work better with our strategic priorities, and 3) adjusting areas that have simply grown faster than our current revenue trajectory can support. We looked carefully at each decision," Shah wrote in the letter.

"We were seeing the tailwinds of the pandemic accelerate the adoption of e-commerce shopping, and I personally pushed hard to hire a strong team to support that growth," Shah wrote. "This year, that growth has not materialized as we had anticipated. Our team is too large for the environment we are now in, and unfortunately we need to adjust."

Sales for Wayfair declined 15% year-over-year for the second quarter, according to CNN, and the retailer saw a loss of 34% of active customers.