(Bloomberg) — Bed Bath & Beyond Inc. will eliminate 2,800 jobs under a plan to cut costs and streamline operations amid deepening challenges for brick-and-mortar retailers.
The “significant workforce reduction” will begin immediately, affecting both corporate headquarters and retail stores, the home-goods retailer said Tuesday in a statement. Along with previously announced restructuring actions, the latest effort will result in as much as $150 million in annual pretax cost savings, the company said.
The job cuts follow plans by Bed Bath & Beyond to close 200 stores and sell assets as it navigates a coronavirus pandemic that has upended the retail sector. Like many peers, Bed Bath & Beyond has tried to scale down, build up its e-commerce business, negotiate with landlords and shore up liquidity where it can. In some cases Bed Bath & Beyond deferred rent payments for stores that went dark due to pandemic shutdowns.
The chain had 55,000 workers as of February, suggesting the cuts account for about 5% of the workforce.
Bed Bath & Beyond shares fell as much as 4.2% in late trading on Tuesday before paring much of the loss. The stock has fallen 29% this year through today’s close.
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