BOSTON — Boston-based home furnishings retailer Wayfair announced organizational changes Thursday morning, including laying off more than 300 employees in Boston.
The company says the changes impact about 350 people working at the headquarters in Boston.
Boston 25 News reporter Evan White reached out to Wayfair for a statement.
To position the organization to take advantage of the opportunity ahead, we continually evaluate the needs of the business and work to increase efficiencies while aligning our teams with the initiatives that drive the greatest impact for our customers. As part of that process, we have made some organizational changes that affect approximately three percent of our global workforce. We are continuing to hire for the many roles needed to drive our long-term success and the continued growth of the business. We remain as confident as ever in Wayfair’s future and our steadfast focus on delighting our customers with the best experience for home.
— John Costello, Wayfair Corporate Communications Manager
Wayfair currently employs more than 17,000 employees worldwide and says the layoffs amount to 3% of its global workforce.
In total, 550 people were laid off worldwide.
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Employees wouldn’t speak with Boston 25 News due to concerts over retribution but did tell us the office is sad that good co-workers were lost.
Wayfair, a near $9 billion company, has tried to grow quickly but has been battered by big competitors like Amazon.
“They face a very uphill battle. They are a champion in their product category but their position is being challenged by the likes of Amazon and so other people have entered the furniture business, the home decor business,” said Frederic Brunel, Associate Dean Undergraduate Programs at Boston University.
The retailer has never made a profit and shares fell 10% to 86% Thursday afternoon. Its stock has fallen 28% in the last year.
“Even in the US their profitability is down year to year," said Frederic Brunel, a BU Marketing Professor. "Their stock price has been halved in about a year.”
According to Brunel, Wayfair faces tough online competition from companies like Amazon and other internet retailers.