Wayfair IncW
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Workforce cut and cost savings expected to boost margins and profitability.
Impact on stocks 1
Consumer Discretionary
Wayfair IncWayfair Stock Jumps 11% After Announcing 13% Workforce Cut
Management
Wayfair shares rose 11% on Friday after the home-furnishing e-commerce company announced it is cutting 13% of its global workforce. CEO Niraj Shah said the company went overboard in hiring during a strong economic period, noting that revenue jumped from $9.1 billion to $14.1 billion in 2020. This is the third round of layoffs, following a 5% cut in August 2022 and a 10% cut in January 2023. Wayfair expects to incur $70 million to $80 million in costs in the first quarter of 2024 but anticipates annualized savings of at least $280 million. The company is aiming for a 10% adjusted EBITDA margin, up from about 1% on a trailing-12-month basis, as growth has largely stalled.
Wayfair IncWorkforce cut and cost savings expected to boost margins and profitability.