Ecommerce company Wayfair CEO Niraj Shah lays off 870 people

Ecommerce company Wayfair CEO Niraj Shah has fired 870 people, or 5% of the company's global workforce, as the company’s anticipated growth did not materialise this year.

"This year, that growth has not materialised as we anticipated. Our team is too large for the environment we are now in. Unfortunately, we need to adjust," he wrote in a memo.

In a filing with the US Securities and Exchange Commission (SEC) late on Friday, the online furniture provider said that on August 19, 2022, "Wayfair announced a workforce reduction involving approximately 870 employees in connection with its previously announced plans to manage operating expenses and realign investment priorities".


"This reduction represents approximately 5% of our global workforce and approximately 10% of our corporate team,” said the company.

The company is also in the process of making substantial reductions in its third-party labour costs.

In Wayfair's second-quarter results, Wayfair saw net revenue loss of about 15% year-on-year.

In February 2020, reports surfaced that Wayfair laid off about 550 workers, with Shah blaming Wayfair's rapid pursuit of growth, adding "it had its drawbacks".

In May this year, Wayfair announced a hiring freeze that would last 90 days, reports The Verge,

Ecommerce company Shopify recently laid off 1,000 employees while Peloton announced that it would lay off 800 employees.