Bed Bath & Beyond Announces More Store Closures, Layoffs
The retailer did not specify how many positions in total would be cut, which positions were eliminated or detail the timeline for the job cuts.
According to a report from CNBC, the retailer in a memo to employees this week first detailed the layoffs, which include the elimination of its chief transformation officer role, most recently held by Anu Gupta.
“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,” said Bed Bath & Beyond CEO Sue Gove in her email to employees, according to CNBC.
Gove was hired as the retailer’s president and CEO in October last year after she spent months in the role in an interim capacity, Retail Leader previously reported.
As CNBC reported, the retailer has been working with the outside firm Berkeley Research Group as part of its transformation efforts to stay in business and stave off bankruptcy, though the firm has been replaced by AlixPartners, sources told the outlet.
Despite its cost-cutting efforts (the retailer says it’s on track to cut around $500 million in costs), Bed Bath & Beyond continues to struggle. It earlier this week reported larger losses than anticipated in the third quarter of last year. The retailer also said it was considering filing for bankruptcy amid slowing sales and foot traffic.
“While the company continues to pursue actions and steps to improve its cash position and mitigate any potential liquidity shortfall, based on recurring losses and negative cash flow from operations for the nine months ended Nov.26, 2022, as well as current cash and liquidity projections, the company has concluded that there is substantial doubt about the company’s ability to continue as a going concern,” the retailer said in a statement.