Boston-based Wayfair announces layoffs of 1,650 employees

Boston-based online furniture seller Wayfair is cutting about 1,650 jobs, or 13% of its global workforce, the company announced Friday.

The restructuring will reduce team sizes across the company and reduce seniority in certain roles with the company planning to “rebuild with modified leveling” this year, CEO and co-founder Niraj Shah said.

“The natural question is to ask ‘Why?’” he wrote in a Friday memo to employees. “I think the reality is that we went overboard in hiring during a strong economic period and veered away from our core principles, and while we have come quite far back to them, we are not quite there.”

A spokesperson for Wayfair said the layoff "impacts primarily corporate roles," and will cut 936 employees from the Boston headquarters, including remote employees who report to the Boston branch from around the country. About 500 of those employees live in Massachusetts.

In January of last year, Wayfair laid off about 1,750 employees — representing 10% of its global workforce at the time. It cut 870 jobs in August 2022, and 550 jobs in 2020.

Friday’s job cuts are expected to bring annualized cost savings of more than $280 million, Wayfair said. The company anticipates incurring about $70 million to $80 million in restructuring costs, mostly for employee severance and benefits, primarily in the first quarter of 2024.

Macy’s also confirmed Friday it is laying off about 3.5% of its total headcount, which amounts to roughly 2,350 employees, and the iconic department store is closing five locations. The Wall Street Journal first reported on Macy's layoffs and planned store closures Thursday, and said the layoffs will occur on Jan. 26.

Job cuts have taken a toll on workers across various industries — including retail, tech, media and hospitality — over the last few years. In recent months, layoffs have been announced at Google, Amazon, Hasbro, LinkedIn and more.

Wayfair shares rose more than 7% Friday.

With reporting from The Associated Press.