Wayfair To Cut , 5% of Its Workforce.
CNN reports that the online retailer is cutting close to 900 jobs worldwide.
In a regulatory filing, Wayfair said the layoffs will help to "manage operating expenses and realign investment priorities.".
News of the cuts caused shares to fall nearly 14% in early trading on Aug.
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CEO Niraj Shah wrote a letter to employees addressing the layoffs.
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We were seeing the tailwinds of the pandemic accelerate the adoption of e-commerce shopping, and I personally pushed hard to hire a strong team to support that growth, Niraj Shah, Wayfair CEO, via letter obtained by CNN.
This year, that growth has not materialized as we had anticipated.
Our team is too large for the environment we are now in, and unfortunately we need to adjust, Niraj Shah, Wayfair CEO, via letter obtained by CNN.
Inflation has had a significant impact on lower and middle-income consumers who no longer have money to spend on the types of items Wayfair sells.
CNN reports that wealthier customers have returned to spending their money on travel and services as opposed to home furnishings.
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Wayfair reported a net loss of $378 million for the second quarter.
