Wayfair, the global e-commerce giant, has announced that it will be laying off 13% of its workforce, which is equivalent to approximately 1,650 employees. This decision comes just a few weeks after CEO Niraj Shah sent out a company-wide email declaring Wayfair’s return to success but urging employees to exercise financial prudence.
In an email to staff on Friday morning, January 19, Shah emphasized the need for this workforce reduction to establish a clear and sustainable organizational model that would benefit the company in the long run. While acknowledging the impact on affected employees, Shah said that this move aligns with the company’s commitment to strategic positioning for sustained growth.
The email revealed that North American staff can expect notifications soon regarding the status of their roles, while affected employees in Europe have already initiated discussions with human resources about the next steps. Shah assured that those affected would be provided with severance pay, although specific details were not included in the initial company-wide communication.
In an official email to employees, Shah acknowledged that despite previous optimization efforts, the company had not achieved the desired organizational structure, prompting the current decision.
The email also traced the company’s evolution from financial constraints in the early 2000s to its growth and development, marked by significant hiring and infrastructure building. The impact of the COVID-19 pandemic, with a surge in business, led to a re-evaluation of the team’s size. Subsequent corporate restructuring aimed to strike the right balance but highlighted the need for further adjustments to achieve goals more efficiently.
