From CNBC:

Wayfair is cutting 13% of its global workforce, amounting to about 1,650 employees. The restructuring is expected to save the company about $280 million, with a focus on reducing management and leadership positions. After the news, Wayfair’s shares surged 10%.

The layoffs come after Hasbro, Etsy, and Macy’s also announced workforce cuts. Wayfair said the cuts were not related to fourth-quarter performance, but rather a proactive move to get the company back to its core structure.

During the pandemic, Wayfair saw annualized sales go from $9 billion to $18 billion. However, as the virus’ impact began to wane, the home goods sector overall started to see a pullback in demand, leading to the need for staff reductions.

Wayfair plans to rebuild portions of its headcount throughout the year, focusing on lower-ranking jobs and positions that execute on actions. If revenue remains flat this year, the company expects to bring in $600 million of adjusted earnings before interest, taxes, depreciation and amortization in 2024, up from a previous expectation of $450 million.



Read more: Home goods retailer to cut 1,650 employees