Wayfair (NYSE:W) moved higher Friday on word of layoffs within its workforce. The company is cutting 13% of its global workforce as the digital home goods retailer continues its efforts to trim down its structure, cut out layers of management and reduce costs after going “overboard” with corporate hiring during the Covid pandemic.
The company plans to lay off around 1,650 employees, including 19% of its corporate team, with a focus on people in management and leadership positions, the company said.
The restructuring – the third Wayfair has implemented since summer 2022 – is expected to save the company about $280 million,
Shares of Wayfair surged 15% in premarket trading after the news was announced.
“The changes announced today reflect a return to our core principles on resource allocation,” Wayfair’s CEO and cofounder Niraj Shah said in a statement. “Although persistent category weakness makes revenue growth challenging, we remain encouraged by the share gains we continue to see.”
The layoffs come after Hasbro (NASDAQ:HAS), Etsy (NASDAQ:ETSY) and Macy’s (NYSE:M) all announced cuts to their workforces as retailers contend with slowing demand and an uncertain economy. At the height of the holiday shopping season in mid-December, Hasbro and Etsy announced staff reductions of 1,100 and 225 workers, respectively, and on Thursday, Macy’s said it plans to cut more than 2,300 employees, or 3.5% of its workforce. The department store retailer also has plans to close five stores.
W leaped $5.90, or 11.6%, to $56.80.