Bed Bath & Beyond lays off more workers as it struggles to survive

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A “Store Closing” banner on a Bed Bath & Beyond store in Farmingdale, New York, on Friday, January 6, 2023.

Johnny Milano | Bloomberg | Getty Images

Bed Bath & Beyond has begun its latest round of layoffs, as it fights to stay in business, according to a memo sent to employees Tuesday obtained by CNBC.

The home goods retailer told employees it is sacking its chief transformation officer, held by Anu Gupta, on the same day it reported disappointing third-quarter results fiscal quarter.

In the email to employees, CEO Sue Gove said the company is reducing its workforce “across our corporate, supply chain and store portfolio.” ” She did not say how many employees would be affected, but said it is necessary to ensure Bed Bath’s future.

“While we have taken several important initial steps in our turnaround plan with strong execution, our Q3 2022 results indicate that it will take longer to turn actions into results,” she wrote.

Gupta did not immediately respond to a request for comment. In a statement to CNBC, the company said it is “repositioning elements of our foundation.”

Options function: bed bath & beyond

“As our strategic direction changes and we streamline our operations, our organization needs to be properly scaled to ensure we are equipped for the future. Unfortunately , this has made a difficult decision to say goodbye to some of our colleagues,” said the statement.

The retailer has been working with advisers in recent months to stave off a bankruptcy filing as its financial situation worsens.

Initially, Bed Bath worked with Berkeley Research Group, but it recently chose to replace the firm with AlixPartners, said people familiar with the matter, who declined to be named because they were not authorized to do so. to discuss the matter.

Bed Bath said it does not refer to “exclusive relationships.” Instead the company referred to earlier comments from Gove: “We have a team, both internal and external, with proven experience helping companies successfully navigate complex situations and to be stronger. in good time.”

AlixPartners declined to comment. A representative for Berkeley Research Group did not immediately respond to a request for comment.

Bed Bath & Beyond is facing possible bankruptcy, as its sales decline and its losses grow. The company’s store shelves have become shorter as suppliers demand payment in advance, stop shipping goods or change other payment terms. Bed Bath issued a “going concern” warning last week, saying it could run out of cash to cover costs.

Bed Bath had about 32,000 employees as of February 26, 2022, according to a company filing.

But since then, the company’s workforce has dwindled. In August, it said it would cut about 20% of its corporate and supply chain staff and close about 150 of its designated stores.

Earlier on Tuesday, Gove told investors that Bed Bath has made progress in reducing its operating costs and will cut costs by an additional $80 million to $100 million, with some of those savings come from a smaller workforce.

Gove said in the memo on Tuesday that Bed Bath will hold a town hall on Wednesday to discuss the future.

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