Wayfair cutting 5% of its Global Workforce

Wayfair is cutting 5% jobs (nearly 900 jobs) of the online retailer’s global workforce, as it hopes to recapture its financial balance in a post-pandemic future.

The Wayfair said in a regulatory filing that the cuts will help it "manage operating expenses and realign investment priorities." Shares fell around 14% in early exchanging Friday.

CEO Niraj Shah “wrote in an letter” to employees that the layoffs were a "difficult decision" because of Covid-19.

"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," Shah wrote.

"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."

Sales declined 15% year-over-year for the 2nd quarter. The brand also lost 24% of its regular customers — a sign that the organization is attempting to hold the customers it acquired toward the start of the pandemic. Wayfair posted a deficit of $378 million during the quarter.