Bed Bath & Beyond will lay off 10% of its corporate workforce, totaling approximately 500 workers, as part of restructuring efforts. The retailer aims to simplify its field operations, reduce the number of management positions and outsource certain functions as part of a wider effort to rebuild the foundation of its business model.
The restructuring is expected to save $85 million annually and create hundreds of millions of dollars in cost-saving opportunities in the long-term. The plan also will incur net pretax charges of approximately $26 million.
“We are announcing extensive changes today to right-size our organization as part of our efforts to reconstruct a modern, durable business model,” said Mark Tritton, CEO of Bed Bath & Beyond in a statement. “We do not take this action lightly but, while difficult, these measured and purposeful steps are necessary. This will reset our cost structure, allowing us to re-invest where it matters most to our customers, to reestablish our authority in the home space.”
Bed Bath & Beyond is implementing several strategies to transform its core business and enhance the customer experience, drive sales and position itself for long-term success. The retailer has undergone a number of shakeups since Tritton joined from Target in November 2019, including:
- Streamlining the company’s leadership structure, resulting in the departure of six C-level executives;
- Raising $250 million by selling half its real estate to a private equity firm and leasing back the space;
- Announcing plans to invest $400 million in stores, supply chain infrastructure, IT and digital projects