Wayfair updates to cost efficiency plan, to cut 1,750 employees

Wayfair announced additional details related to right-sizing its cost structure as well as continued strong business performance since the Cyber Five period. As a part of this effort, Wayfair announced a reduction of approximately 1,750 employees, representing 10% of its global workforce as of December 31, 2022. This includes approximately 1,200 or 18% of corporate employees. These changes reflect efforts to eliminate management layers and reorganize to be more agile. Inclusive of the August 2022 restructuring, the labor portion of the plan represents approximately $750 million in annualized cost savings, with the major steps necessary to realize these savings now complete. "Although difficult, these are important decisions to get back to our 20-year roots as a focused, lean company premised on high ambitions and great execution," said Niraj Shah, CEO, co-founder, and co-chairman, Wayfair. "The changes announced today strengthen our future without reducing our total addressable market, our strategic objectives, or our ability to deliver them over time. In hindsight, similar to our technology peers, we scaled our spend too quickly over the last few years. The good news for Wayfair is that we have operated in a highly productive and efficient way for the vast majority of our 20 year history, and we are now simply returning to that."