E Point Perfect

Wayfair to cut 870 jobs as it slashes global workforce by 5%

Wayfair is making 870 job cuts globally
// Wayfair will cut 870 jobs across its global workforce
// The retailer had grown its team after a sales surge during the pandemic but said the expected growth “had not materialised” this year

Online furniture retailer Wayfair will cut about 870 jobs, which equates to 5% of its global workforce, as it looks to slash operating costs.

Wayfair, which is headquartered in Boston in the US, has a UK head office in London and a warehouse in Lutterworth in Leicestershire.

It did not specify where redundancies would be made. The online retailer said the cuts would help it “manage operating expenses and realign investment priorities”.

Wayfair CEO Niraj Shah told staff the redundancies were “a difficult decision”.

READ MORE: Wayfair welcomes former Amazon executive as head of Europe

He said: “We were seeing the tailwinds of the pandemic accelerate the adoption of ecommerce shopping, and I personally pushed hard to hire a strong team to support that growth.

“This year, that growth has not materialised as we had anticipated. Our team is too large for the environment we are now in, and unfortunately we need to adjust.”

Wayfair had been a winner of the pandemic as stay-at-home shoppers spent an increasing amount of money both online and on home furnishings.

Earlier this month, the retailer reported a larger-than-expected second-quarter loss, as it was hit by rising supply chain costs and a decline in demand.

Sales fell 14.9% to $3.3 billion as it made a net loss of $378 million.

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