In order to reprioritize investment needs and meet the company's current needs, Wayfair is laying off close to 900 employees. The company instituted a hiring freeze in May.
About 5% of the company's global workforce and 10% of its corporate team have been laid off. The company is cutting 400 jobs at its headquarters.
In a memo to employees, founder and CEO Niraj Shah said that he personally pushed to hire a strong team to support the growth of the business. Growth has not materialized as we had expected. Our team is too big for the environment we are in.
Some teams may have been affected by the layoffs. The company referred the article to the memo.
The laid-off will get a package based on geography. Employees based in the U.S. will receive a minimum of 10 paid weeks in addition to other resources.
The company said it expects layoffs to cost between $30-40 million. The hit will be reflected in the current quarter.
Shah said that they are moving towards a level of profitability that will allow them to control their own destiny. To focus on the basics, drive cost efficiency and earn more customer and supplier loyalty are our goals. We are moving to seize that opportunity despite the macro environment and our belief in the size of the opportunity.
The company has taken a hit since it was profitable for the first two years of the COVID-19 epidemic. According to The Wall Street Journal, the company's stock fell on Friday.
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