Wayfair Inc. is cutting about 870 jobs, or 5% of its global workforce, as part of a plan by the home goods company to manage operating costs and realign its investment priorities.
With millions sheltering at home in 2020, the Boston company reported 55% sales growth as customers spent heavily to furnish living rooms and other parts of their homes. Last year, as more people ventured out, sales at Wayfair declined 3.1%.
Wayfair expects costs related to the job cuts to run between $30 million and $40 million in the third quarter, mostly related to employee severance and benefits.
It's also in the process of making substantial cuts in third party labor costs, according to the company. Wayfair shares tumbled 20% on Friday to close at $57.01