Wayfair announces major layoffs; 400 workers losing jobs in Boston
BOSTON - Online retailer Wayfair announced Friday it is laying off 5% of its global workforce, with hundreds of job cuts taking place at its headquarters in Boston.
Wayfair said in an SEC filing that the "workforce reduction" involves 870 employees. About 400 employees in Boston are losing their jobs, the company told WBZ-TV.
The layoff announcement comes weeks after Wayfair posted a $378 million quarterly loss. Founder and CEO Niraj Shah said the company is not growing as fast as expected and now "our team is too large."
"I take responsibility for the impact this decision will have on the nearly 900 Wayfairians who will be told today they are no longer a part of building our company's future," Shah wrote.
Wayfair has been struggling to keep customers after a spike at the start of the pandemic. Earlier in August, Wayfair said it had lost 24% of active customers since last summer.
Inflation has also stopped some shoppers from spending money on furniture and homegoods.
"Customers are being more deliberate about where their discretionary dollars are going as prices at the gas station and grocery store eat up a greater share of [their] wallet," Shah said on a previous investor call with analysts.
