Wayfair lays off 3% of its staff as it streamlines operations amid struggles to make a profit
Charisse Jones
Wayfair, the online furniture and home goods company, is laying off 550 employees, 3% of its global workforce.
The Boston-based company said the job cuts were part of an effort to streamline its operations.
"We continually evaluate the needs of the business,'' the e-commerce retailer said in a statement. "As part of that process, we have made some organizational changes that affect approximately 3% of our global workforce.''
Wayfair has struggled to make a profit despite its ubiquitous ads and rapid growth.
"Wayfair's consolidation comes as no great surprise,'' says Neil Saunders, managing director of the retail consultancy GlobalData. "The company has prioritized growth for the past few years and has been successful in boosting revenue. However, this has never been translated into profit, and Wayfair has chalked up huge losses over an extended period of time. This dynamic could not go on indefinitely.''
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Wayfair's job cuts come in the wake of similar moves by Macy's and Kohl's. Many retailers are struggling to make a profit and stay afloat amid a shopping landscape transformed and dominated by Amazon.