(Reuters) -Online furniture retailer Wayfair Inc said on Friday it will cut 1,750 jobs, or 10% of its workforce, as part of its cost savings plan at a time when consumers are selective with their discretionary purchases.
The company’s shares rose about 7% to $41.66 in premarket trading.
The Boston-based retailer joins a growing list of companies, from tech giants such as Alphabet Inc and Microsoft Corp to home goods retailer Bed Bath & Beyond Inc, who are slashing their workforce to rein in costs to ride out of the economic downturn.
Wayfair said on Friday the job cuts will affect about 1,200, or 18% of corporate employees. The company said in August it will cut 870 jobs.
The company previously outlined a $1.4 billion cost savings plan in a bid to scale down on operating costs amid weakening demand for its furnishings.
Including the August workforce reduction, the company said on Friday the labor portion of the plan represents about $750 million in savings.
The Wall Street Journal first reported on the layoffs on Thursday.
Wayfair had 16,681 full-time equivalent employees as of Dec. 31, 2021, according to a regulatory filing.
(Reporting by Granth Vanaik in Bengaluru; Editing by Savio D’Souza and Shinjini Ganguli)
