Wayfair Soars 11% on Workforce Cut Announcement

Wayfair Soars 11% on Workforce Cut Announcement Jan. 19, 2024, 12:27 p.m., readers: 29

Wayfair's (NYSE:W) stock jumped more than 11% intra-day today following the online furniture and home goods retailer's announcement of a 13% workforce reduction in a bid to restructure the company. Wayfair's CEO, Niraj Shah, in a message on the company's website, acknowledged that Wayfair had expanded its team excessively during a period of economic prosperity, deviating from its foundational principles. This overexpansion leads to the elimination of about 1,650 positions. The Boston-based company anticipates these cuts will result in annual savings exceeding $280 million, contributing to a significant increase in adjusted earnings before interest, tax, depreciation, and amortization in 2024. Wayfair also expects to incur up to $80 million in expenses related to the layoffs, mainly covering severance and benefits. The majority of these costs are projected to be recorded in the first quarter of 2024.

About NYSE: W

W ayfair Inc. engages in the e-commerce business in the United States and internationally. The company provides approximately thirty-three million products for the home sector under various brands. It offers online selections of furniture, décor, housewares, and home improvement products through its sites, including Wayfair, Joss & Main, AllModern, Birch Lane, and Perigold brands.

Price: 55.35
Market cap: 6.7 billion USD
Eps: -6.47
P/e ratio: -8.55
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