Wayfair cuts 1,650 jobs from its global workforce

san francisco (Uttam Hindu News): E-commerce company Wayfair has announced the layoff of 1,650 employees globally, or 13 percent of its workforce, to reduce costs.

According to CNBC, the latest layoffs are expected to provide the company with more than $280 million in annual cost savings.

“I want to thank the 1,650 team members who are leaving us today,” Wayfair co-founder and CEO Neeraj Shah said in a blogpost on Friday. You are all valuable and talented individuals, and each of you has made incredible contributions to Wayfair and our customers.”

Wayfair saw a boom in its business due to the pandemic as consumers staying at home spent money on home goods like furniture and decor. “Sales increased from $9 billion to $18 billion almost overnight and the company needed to increase its workforce,” Shah said.

As the impact of the virus subsided, the demand for domestic products started declining. Due to which, Wayfair needs to reduce its workforce to ensure that its staffing levels are proportionate to the business it is doing.

The company said it will offer severance to those affected and support them during this transition.

“We will also provide access to Employee Assistance Program resources and Wayfair alumni networking assistance, as well as other benefits and resources,” Wayfair said.

In 2022, Wayfair laid off 870 people, or 5 percent of the company’s global workforce, because the growth they had hoped for did not materialize.

Meanwhile, media reports say that Google has laid off more than 1,000 employees in the latest round of job cuts announced by the company.

The company laid off employees in several departments, including Google’s hardware, central engineering teams and Google Assistant.