Wayfair to cut 1,650 jobs

Wayfair is cutting about 13% of its global workforce, affecting about 1,650 employees, the company announced Friday.

The e-commerce home goods retailer said it expects the restructuring plan, which began in August 2022, will save more than $280 million. According to the March 2023 proxy statement, at the end of 2022, the company employed 17,505 workers.

“The changes announced today reflect a return to our core principles in resource allocation, such as staying fit across spans and layers and focusing on our highest priorities,” Wayfair CEO Niraj Shah said in a statement.

A month after the layoffs, Shaw said in an email to employees that “laziness has not had much of a history of being rewarded with success” and urged them to work harder.

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Shares of the retailer rose more than 15% in pre-market trade.

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Wayfair said it will cut 10% of its workforce, or about 1,750 jobs, in January 2023.

Other retailers, including Macy's, Hasbro and Etsy, have recently announced layoff plans. Macy's said Thursday it will cut 2,350 jobs and close five stores. Hasbro said in December it would cut 1,100 jobs after quarters of falling toy sales. In December, Etsy said it would cut 225 jobs, or 11% of its workforce, citing a challenging economy.

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Wayfair expects to incur between $70 million and $80 million in costs related to employee severance and benefit costs.

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The company will release quarterly results in February.