Wayfair is laying off 5% of its employees worldwide.

Wayfair is laying off 5% of its employees worldwide.

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Wayfair is laying off over 900 employees worldwide, or around 5% of the once-popular online retailer's workforce, 

as it attempts to reestablish its financial stability in the wake of the pandemic. In a regulatory statement, the business stated that the reductions

That will assist in "managing operating expenses and realigning investment priorities." In early Friday trade, shares dropped by approximately 14%.

In a message to the staff, CEO Niraj Shah stated that the layoffs were a "tough decision" brought on by Covid-19. 

Since the epidemic was accelerating the adoption of online shopping, Shah noted, "I personally pushed hard to build a solid team to support that development.

"That growth has not occurred this year as expected, which is disappointing. Unfortunately, we must make adjustments because our team is too big for the situation we are in right now."

When the epidemic first started, Wayfair was thriving because there was such a high demand for upscale furniture and other home decor upgrades 

that it disrupted worldwide supply networks and resulted in protracted shipment delays.  However, two years later, the situation is very different. 

Lower- and middle-class consumers are feeling the effects of inflation and have reduced their discretionary spending in order to prioritize paying for essentials like groceries, gas, and rent.

Wealthier consumers now spend more on travel and services rather than furnishings and other commodities. The demand for new homes has decreased as a result of the sharp increase in mortgage rates.