Bed Bath & Beyond Makes More Job Cuts, 2,800 Employees Laid Off Effective Immediately

Bed Bath & Beyond (BBBY) announced it will cut 2,800 jobs as it looks to further restructure its retail business.

The cuts will affect workers at the company's corporate headquarters and at its namesake retail stores. The layoffs are effective immediately.

Bed Bath & Beyond said the job cuts are part of an effort to “reduce layers at the corporate level” as it looks to realign its focus on e-commerce sales. The retailer also said it is looking to realign if technology, supply chain, and merchandising teams to “support strategic growth initiatives.”

The company is looking to simplify its operations under the leadership of Mark Tritton and provide more financial freedom.

In a statement, Tritton said: “Saying goodbye to colleagues and friends is incredibly difficult, but this component of our comprehensive restructuring program is critical to rebuild the foundation of our business, construct a modern, balanced and durable business model, and meet the structural shift in customer shopping and service preferences that we have seen accelerate as a result of COVID-19.

“Today's action forms part of a series of changes we are making to reduce the cost of our business, further simplify our operations and support our teams so we can emerge from the pandemic in an even stronger position,” he added.

Bed Bath & Beyond temporarily closed all of its stores in March as the coronavirus pandemic took a toll on the retail industry. The company has since reopened stores and continues to offer curbside pickup and online sales of its home goods merchandise.

The retailer said the job cuts will result in an annual pre-tax cost savings of about $150 million. The company will take a charge of $25 million in fiscal 2020 for severance pay and other costs related to the job cuts.

Shares of Bed Bath & Beyond shares were trading at $12.56 as of 10:31 a.m. EDT, up 24 cents or 1.95%.