Bed Bath & Beyond Inc. will eliminate 2,800 jobs under a plan to cut costs and streamline operations amid deepening challenges for brick-and-mortar retailers.
The “significant workforce reduction” will begin immediately, affecting both corporate headquarters and retail stores, the home-goods retailer said Tuesday in a statement. Along with previously announced restructuring actions, the latest effort will result in as much as US$150 million in annual pretax cost savings, the company said.
The job cuts follow plans by Bed Bath & Beyond to close 200 stores and sell assets as it navigates a coronavirus pandemic that has upended the retail sector. Like many peers, Bed Bath & Beyond has tried to scale down, build up its e-commerce business, negotiate with landlords and shore up liquidity where it can. In some cases Bed Bath & Beyond deferred rent payments for stores that went dark due to pandemic shutdowns.
The chain had 55,000 workers as of February, suggesting the cuts account for about 5 per cent of the workforce.
Bed Bath & Beyond shares fell as much as 4.2 per cent in late trading on Tuesday before paring much of the loss. The stock has fallen 29 per cent this year through today’s close.