Wayfair stock climbs after online retailer lays off 1,750 workers
Publishing timestamp: 2023-01-20 13:56:35
Summary
Wayfair's stock price jumped 20% Friday after the retail giant announced it will let go of roughly 1750 employees, or 10% of its global workforce, to support company-wide cost reductions. Wayfair has already begun layoffs in Europe, and employees in North America will receive notice Friday about their employment status. Executives expect two rounds of layoffs will save $750 million year. Wayfair has been forced to reconcile with reverse in their pandemic-era gains as consumers shift their spending priorities away from categories like home furnishings. CEO Niraj Shah wrote that company's operating expenses relative to its revenue grew to 17% in past year after sitting at about 10% to 11% for most of company's 20-year history. In addition to layoffs, he added retailer has slimmed costs in advertising, insurance policies, janitorial services and software licenses. Company now expects to return to adjusted EBITDA profitability earlier in 2023 as result of these cost-cutting efforts.
Sentiment: MIXED
Tickers: W,
Keywords: wayfair inc, retail industry, business news, markets, business,