Wayfair (NYSE: W) is currently making headlines with the announcement of a significant reduction in its workforce, amounting to 1,650 employees or 13% of its total global workers. This includes a layoff of 19% of its corporate staff, marking a substantial streamlining of operations for the e-commerce company and furniture giant. The restructuring is expected to result in costs of $70 million to $80 million in relation to severance and benefits. However, these expenses are anticipated to be largely contained within the first quarter of 2024, with the subsequent job cuts projected to yield annual cost savings of over $280 million. Wayfair’s CEO, co-founder, and co-chairman, Niraj Shah, emphasized that while these measures will strengthen the company’s Adjusted EBITDA roadmap, the primary focus is on generating an Adjusted EBITDA exceeding equity-based compensation and capital expenditures. Shah’s goal is to expedite substantial improvements in this area, citing the maximization of Free Cash Flow and the tight control, even reduction, of total share count as the company’s ultimate objectives. Interestingly, Wayfair was among the companies that increased hiring during the Covid-19 pandemic. However, this marks the third round of employment cutbacks for the company since the summer of 2022, signifying a shift in trajectory for the furniture e-commerce business. W stock witnessed an uptick of 14.1% on Friday morning following the announcement. For investors seeking the latest stock market stories, there’s more to discover. Movement in stocks such as Esperion Therapeutics (NASDAQ: ESPR), iRobot (NASDAQ: IRBT), and Treasure Global (NASDAQ: TGL) also commands attention today.
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