“This year, that growth has not materialised as we anticipated. Our team is too large for the environment we are now in. Unfortunately, we need to adjust,” he wrote in a memo.
In a filing with the US Securities and Exchange Commission (SEC) late on Friday, the online furniture provider said that on August 19, 2022, “Wayfair announced a workforce reduction involving approximately 870 employees in connection with its previously announced plans to manage operating expenses and realign investment priorities”.
“This reduction represents approximately 5% of our global workforce and approximately 10% of our corporate team,” said the company.
The company is also in the process of making substantial reductions in its third-party labour costs.
In Wayfair’s second-quarter results, Wayfair saw net revenue loss of about 15% year-on-year.
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In February 2020, reports surfaced that Wayfair laid off about 550 workers, with Shah blaming Wayfair’s rapid pursuit of growth, adding “it had its drawbacks”.
In May this year, Wayfair announced a hiring freeze that would last 90 days, reports The Verge,
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Shopify recently laid off 1,000 employees while Peloton announced that it would lay off 800 employees.
