Wayfair layoffs slash 13% of its workforce after CEO Niraj Shah warned staff ... trends now
Wayfair is slashing 1,650 jobs, or 13 percent of its global workforce, weeks after the online furniture retailer's CEO warned employees that 'laziness isn't rewarded.'
Shares of Boston-based Wayfair, which had dropped 23 percent in the past month, jumped 13.9 percent at the opening bell on Friday, following the early-morning layoffs announcement.
In a memo to employees, CEO Niraj Shah admitted the company 'went overboard in hiring during a strong economic period' and said the layoffs would ensure 'everyone in the company can thrive'.
In late December, Shah drew backlash over a year-end message to employees chiding 'laziness' after the company returned to profitability following several prior rounds of layoffs.
'Working long hours, being responsive, blending work and life, is not anything to shy away from. There is not a lot of history of laziness being rewarded with success,' he wrote.
Wayfair is slashing 1,650 jobs, or 13 percent of its global workforce. CEO Niraj Shah (above) admitted the company 'went overboard in hiring during a strong economic period'
Wayfair said that it expected to realize approximately $280 million in annual savings through the layoffs, net of plans to rebuild a portion of the workforce over 2024
In his memo on Friday, Shah said that layoff notification had already begun in Europe, and that all North American employees would receive an email on Friday notifying them whether their job had been cut.
On LinkedIn, impacted workers shared news of their layoffs and declared themselves open to new opportunities.
'I'm not leaving with an attitude of sadness or disappointment,' wrote Jason Farneth, a senior product manager who was laid off after nearly two years at Wayfair.
'Knowing the health of Wayfair, there was no way to sustain the team sizes they have. It was a simple equation necessary to save the jobs of those that are staying,' he added.
Farneth shared that he planned to take a previously-scheduled family vacation over the weekend, and then launch his job hunt on Monday.
In a Discord chat devoted to former Wayfair employees, laid off employees who work remotely said they had received boxes to mail in their laptop and other company equipment, with a deadline to return the items.
Others, who work in the company's offices, wondered whether they would be able to
