by BOSTON – Wayfair said it is cutting its global workforce by 5%, a move that will affect some 870 employees.
The reduction also includes about 10% of its corporate staff.
The company said that the announcement is in connection with its previously announced plans to manage operating expenses and realign investment priorities. In addition, the company said that it is also making substantial reductions in its third party labor costs.
The move is expected to incur between $30 million and $40 million in costs, which are mainly employee severance and benefits. It expects most of these costs to occur in the third quarter.
Seeking Alpha reported that Wayfair (W) shares fell 7.09% premarket to $66.28 following the announcement.
