Bed, Bath & Beyond slashed its workforce this week, apparently responding to consumers’ burgeoning preference for online shopping.
“We were able to reassign many of those impacted by this realignment to other available store and corporate roles, but ultimately we had to reduce our headcount,” a spokesperson for Bed Bath said in a statement. “This decision was a difficult but necessary step, and we are committed to treating all associates across the organization fairly and with respect.” The company did not officially release the exact number of workers affected.
Citing an anonymous source familiar with the matter, CNBC reported that the home goods retail chain laid off 150 out of its 65,000 employees this week. The company has experienced seven consecutive quarters of deteriorating sales.
Only a few days ago, reports surfaced about activist investor trio Legion Partners Asset Management, Macellum Advisors GP and Ancora Advisors wanting to replace Bed, Bath & Beyond's entire board, as they felt that the company lagged behind digital trends and allowed costs to climb.
However, the recent layoffs were planned before the investors’ letter, and are part of its ongoing restructuring, according to the anonymous person (as reported by CNBC). According to CNBC, Bed Bath has written a memo to its employees, where it has emphasized its plans to re-platform its websites, focus on personalized marketing with help of data-driven insights, and improve operating structure in its buying group.