Bed Bath & Beyond cuts 2,800 jobs in reorg
Bed Bath & Beyond Inc. is eliminating 2,800 jobs across its stores and headquarters in its ongoing effort to cut costs and streamline operations as it focuses on online sales.
The struggling home goods chain said the workforce reduction is effective immediately and is part a “major realignment of its organizational structure” that will generate about $150 million in annual pre-tax cost savings. The job cuts will further strip layers at its headquarters and "significantly reposition field operations to better serve customers in a digital-first shopping environment," the company said.
The layoffs are the latest cost-cutting strategy by Bed Bath & Beyond, which in July announced plans to close about 200 stores during the next two years. Earlier this year, in February, the company announced it was eliminating 500 corporate positions across the business and outsourcing several functions in a move “to focus on core competencies.
The retailer said the latest actions will help fund a number of growth initiatives to enhance the omnichannel shopping experience in-store and online, building on the recent introduction of buy-online-pickup-in-store and curbside pickup services. The changes also will support plans to launch an array of private brands in 2021 and deliver an “end-to-end transformation” of the company's supply chain.
“Saying goodbye to colleagues and friends is incredibly difficult, but this component of our comprehensive restructuring program is critical to rebuild the foundation of our business, construct a modern, balanced and durable business model, and meet the structural shift in customer shopping and service preferences that we have seen accelerate as a result of COVID-19,” stated Bed Bath & Beyond president and CEO Mark Tritton. “Today's action forms part of a series of changes we are making to reduce the cost of our business, further simplify our operations and support our teams so we can emerge from the pandemic in an even stronger position.”