Aug. 19 (UPI) -- Online retailer Wayfair announced it is reducing its workforce by 870 employees as sales have slowed after pandemic highs.
In its regulatory filing, Wayfair said its workforce reduction represents 5% of its global workforce and 10% of its corporate team. The company's stock price plunged more than 14% Friday afternoon.
"As a result of this workforce reduction, we expect to incur between approximately $30 million and $40 million of costs, consisting primarily of employee severance and benefit costs, substantially all of which we expect to incur in the third quarter of 2022," Wayfair said in a statement.
"The foregoing estimated amounts do not include any non-cash charges associated with stock-based compensation. These estimates are subject to a number of assumptions and actual results may differ materially."
In a letter to employees, Wayfair CEO said the layoffs were a "difficult decision" resulting from a slowdown in sales.
Last year, sales fell 3.1% after a 55% increase in 2020.
"We were seeing the tailwinds of the pandemic accelerate the adoption of e-commerce shopping, and I personally pushed hard to hire a strong team to support that growth," Shah wrote, according to CNN.
"This year, that growth has not materialized as we had anticipated. Our team is too large for the environment we are now in, and unfortunately, we need to adjust."
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