E-commerce company Wayfair has terminated jobs of 870 people, or 5 percent of the company’s global workforce.
Wayfair CEO Niraj Shah, in a memo, said the company was “seeing the tailwinds of the pandemic accelerate the adoption of ecommerce shopping, and I personally pushed hard to hire a strong team to support that growth.”
“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.”
The online furniture provider said that on August 19, 2022 Wayfair announced a workforce reduction involving approximately 870 employees in connection with its previously announced plans to manage operating expenses and realign investment priorities.
This reduction represents approximately 5 percent of global workforce and approximately 10 percent of corporate team.
The company is also in the process of making substantial reductions in its third party labour costs.
Wayfair reported net loss of $378 million on revenue of $3.3 billion (–14.9 percent) during the second quarter of 2022. Active customers reached 23.6 million as of June 30, 2022, a decrease of 24.1 percent year over year.
Wayfair generated $12.6 billion in revenue for the twelve months ended June 30, 2022. Headquartered in Boston, Massachusetts with operations throughout North America and Europe, Wayfair has 18,000 employees.
E-commerce company Shopify recently laid off 1,000 employees while Peloton announced that it would lay off 800 employees.