BOSTON — Wayfair is cutting about 870 employees, including 400 in its home city of Boston, as part of a plan previously announced by the home goods company to manage operating costs and realign its investment priorities after the pandemic.
Chief executive Niraj Shah announced the job cuts in a memo to all 18,000 employees on Friday morning. All North American workers were to be told on Friday if their jobs are affected, while those conversations already had begun with employees in Europe and Asia.
The company is offering severance based on geography, tenure, and job level. In the US, for example, Wayfair is offering a minimum of 10 weeks of pay, as well as continued vesting of employee equity through October.
Wayfair expects costs related to the job cuts to run between $30 million and $40 million in the third quarter, mostly related to employee severance and benefits.
With millions sheltering at home in 2020, the Boston company reported 55% sales growth as families spent heavily to furnish living rooms and other parts of the house. But last year, as more people ventured out, sales at Wayfair declined 3.1%.
The company said that it’s also in the process of making substantial cuts to third-party labor costs as well.
Shares tumbled 13% in Friday morning trading.
This is a developing story. Check back for updates as more information becomes available.
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