A week after announcing it was looking into strategic alternatives — including a potential bankruptcy filing or a sale of the company — Bed Bath & Beyond has begun layoffs to cut costs.
“As part of our turnaround plan, we are reevaluating all aspects of our enterprise and resetting elements of our foundation. As our strategic direction changes and we streamline our operations, it is 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,” the company said in a statement emailed to Retail Dive.
The employees who remain with the company will be focused on Bed Bath & Beyond’s turnaround efforts. “Our associates have built our business and understand the importance of our work. As we consider the paths forward and power our turnaround, we are fortunate to have a talented, dedicated, and hard-working team to help us realize our full potential,” the company said.
In a filing with the Securities and Exchange Commission on Tuesday, the company said in the third quarter it initiated cost reductions of about $80 million to $100 million across corporate, including in overhead expense and headcount. Bed Bath & Beyond has also reportedly the eliminated chief transformation officer role, according to a CNBC report. The position what most recently held by Anu Gupta before she was named chief growth officer in November 2021. Bed Bath & Beyond did not immediately respond to Retail Dive’s request for comment regarding the role elimination.
While Bed Bath & Beyond’s new CEO Sue Gove in August introduced a turnaround plan — which included closing more than 150 stores, laying off employees and discontinuing some of its private brands in favor of national brands — inventory constraints hindered progress and negatively impacted the company’s financial performance.
Bed Bath & Beyond earlier this week reported third-quarter net sales fell 33% year over year to $1.3 billion, while comparable sales declined 32%. Losses recorded during the period as well: The retailer’s operating loss increased by more than 423%, reaching $450.9 million, while its net loss grew by 42.2% to reach about $393 million.