Wayfair to cut 340 employees in Technology team, sees $33M-$38M in charges

In a regulatory filing, Wayfair (W) said that on March 7, the company announced a workforce reduction involving approximately 340 members of its Technology team. These changes reflect efforts to reshape, streamline and refocus the company’s Technology organization after completing significant modernization and replatforming milestones, the company said. As a result of this reorganization, the company expects to incur aggregate charges of approximately $33M-$38M, consisting primarily of cash employee-related costs, including severance, benefits and transition costs. The majority of the cash payments are expected to be made over the next 12 months. In the near term, the company expects elevated transition costs will largely offset structural cost savings from the Technology reorganization. However, the company expects to incrementally realize savings from the reorganization starting in the second half of 2025, and building into the beginning of 2026.