Sleep Number announces additional cost reduction actions

The company said, “In light of the demand trajectory change in August, the company initiated additional cost reduction actions which are expected to reduce 2024 operating expenses by approximately $50 million, and also accelerated gross margin initiatives. The operating expense reductions are incremental to the $80 million of operating expense reductions we expect to realize in 2023. The cost restructuring actions are broad-based and include a reduction in headcount across all areas of the organization, including in corporate and R&D functions . We are rationalizing our store portfolio with a planned closure of 40 to 50 stores by the end of 2024, along with slowing the rate of new store openings and remodels, and also reducing our 2024 capital expenditures. Gross margin improvement actions include value engineering and cost optimization strategies, including driving additional efficiencies through our manufacturing and home delivery network. The business restructuring actions are expected to result in up to $20 million of one-time restructuring costs, with an estimated $10 million of the costs being recorded in the fourth quarter of this year.”