Bed Bath & Beyond eliminates 500 jobs
A restructuring program to rebuild the foundation of Bed Bath & Beyond’s business and create a sustainable, durable business model has resulted in the elimination of 500 positions.
The restructuring program includes a reorganization and simplification of the retailer’s field operations, a significant reduction in management positions across the business, and outsourcing of several functions. The company said in a statement the moves represented a major pivot in the company's plan to realize several hundred million dollars of cost saving opportunities over the long-term. The overall restructuring program is expected to reduce annual SG&A expense by approximately $85 million, as part of a strategic realignment to create greater focus on the company's core business and initiatives designed to enhance the customer experience, drive sales, and position the company for long-term success.
"We are announcing extensive changes today to right-size our organization as part of our efforts to reconstruct a modern, durable business model,” said Mark Tritton, the former head of merchandising at Target who joined Bed Bath & Beyond as president and CEO last November. “We do not take this action lightly but, while difficult, these measured and purposeful steps are necessary. This will reset our cost structure, allowing us to re-invest where it matters most to our customers, to re-establish our authority in the home space."