UNION, N.J. — Bed Bath & Beyond says it’s cutting 2,800 jobs at its New Jersey corporate headquarters and stores — about 5% of its overall workforce — as the ailing retailer looks to move more of its business online.
The company says the move will save it about $150 million a year, before taxes. Those estimated savings are in addition to the $85 million in savings expected as a result of a restructuring program announced in February.
The company says the action is designed to further reduce layers at the corporate level, significantly reposition field operations to better serve customers who are shopping more online, as well as realign technology, its supply network and merchandising teams to support growth initiatives.
Bed Bath & Beyond says the changes will help fund a number of growth initiatives to enhance the shopping experience in store and online, in addition to supporting plans to launch an array of new customer-inspired owned brands in 2021.
The company’s CEO, Mark Tritton, provided this statement:
"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.”
"We have made significant progress this year and these purposeful interventions are designed to allow us to maintain our financial flexibility and re-invest where it matters most to our customers and our people. As we work to re-establish our authority in Home, Baby, Beauty and Wellness, we are encouraged by the strong customer response to new services such as BOPIS and Curbside Pickup, and the continued strength in our digital channels as we improve the curation of our product assortment, enhance the ease and convenience of the shopping experience, and make it easier to feel at home."