Online furniture retailer Wayfair has announced the layoff of 1,650 employees, 13% of its total workforce. According to the company, this move would allow it to save some $280 million, at a time when the economy is cooling.
The company's founder and CEO, Niraj Shah, noted that the layoffs come after hiring too many people while sales were growing. "The reality is that we went too far in terms of hiring during a strong economic period and moved away from our core principles."
Third cut since 2022
This is the company's third job cut since the summer of 2022. At the moment, the number of people working for Wayfair amounts to 14,000. On this occasion, the departures will focus on people in management and leadership positions, according to the company. During the past year, the company had a turnover of 12 billion dollars, reaching 22 million customers.
These layoffs follow cuts announced by Hasbro, Etsy and Macy's, caused by slowing demand and economic uncertainty.
