From Time Magazine:

Online furniture and home goods retailer Wayfair announced it was laying off about 1,650 global employees—13% of its workforce.

The cuts were necessary to establish a “clean organizational model,” despite Wayfair’s consistently profitable status and gaining market share. Niraj Shah, the CEO of Wayfair, extended gratitude to the 1,650 team members who will be leaving the company.

Overhiring during a strong economic period gradually led Wayfair away from its core principles. These cuts mark the company’s first round of layoffs in February 2020. Two more would follow in 2022 and 2023.

Shah’s email last month to employees galvanized them to keep working tirelessly; the stock surged following Friday’s announcement that he anticipates the layoffs will result in $280 million in yearly savings.

Despite Shah’s memo, the notification caused negative attention for Wayfair, as there has never been more places for discerning customers to shop online. Surveys show repeated layoffs and replacements are bad for productivity and produce more tech debt and work documentation.



Read more: Wayfair just axed 13% of its workforce, weeks after its CEO warned staff against laziness