Wayfair, which has been working to achieve US $1.4bn in annualised cost savings since August ’22 has announced that it must now reduce its headcount in the US and overseas in order to be able to operate profitably in the current weakened market. In total, this means that some 18 per cent of its workforce – amounting to 1750 employees are being let go as the business seeks to reduce its ongoing overheads. Consultations with employees have already commenced in Europe.
CEO Niraj Shah said: “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. 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.”
Wayfair generated US12.4bn in net revenue for the 12 months ended 30 September 2022. It launched in Ireland as recently as June last year to extend its reach in Europe, opening a customer service unit in Galway.
Share