Bed Bath & Beyond cuts more employees ahead of potential bankruptcy

“While we have taken several important initial steps in our turnaround plan with strong execution, our Q3 2022 results signal that it will take longer to translate actions into outcomes,” Grove wrote in an email obtained by CNBC.

“As our strategic direction changes and we streamline our operations, it’s necessary to right-size our organization to ensure we are equipped for the future. Unfortunately, this has necessitated making the difficult decision to say goodbye to some of our colleagues,” Bed Bath & Beyond told CNBC in a statement.

By the end of February 2022, the company had roughly 32,000 employees, according to a filing. But in August, the retailer not only cut about 20% of its corporate and supply chain workforce, but also closed about 150 of its stores.

Last week, Bed Bath & Beyond announced that it’s approaching bankruptcy due to declining sales. The company issued a “going concern” warning that it likely won’t have enough money to cover expenses, such as lease agreements or payments to suppliers. On Tuesday, Gove told investors that the company has made progress in reducing its operating expenses and will cut costs by an additional $80 million to $100 million.

Bed Bath & Beyond lost $393 million during fiscal Q3, a 42% increase from year-ago losses, the company announced on Tuesday. Net losses have now exceeded $1.12 billion for the first nine months of the fiscal year.


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