Bed Bath & Beyond will cut its workforce by about 2,800 positions, launch brands and take other steps to build out its omnichannel powers in the coming months.
What the Union, New Jersey-based retail chain called a major realignment of its organizational structure will bring an estimated annual pre-tax cost savings of approximately $150 million, according to Bed Bath & Beyond. The changes will help fund a number of growth initiatives to enhance the company's "omni-always" shopping experience in store and online, building on the recent introduction of buy-online-pickup-in-store (BOPIS) and curbside pickup services, in addition to supporting plans to launch an array of new customer-inspired own brands in 2021 and to deliver an end-to-end transformation of the retailer’s supply chain.
The effort also includes a significant workforce reduction from across its corporate headquarters and retail banner stores, effective immediately. According to Bed Bath & Beyond, this action is designed to further reduce layers at the corporate level, significantly reposition field operations to better serve customers in a digital-first shopping environment, and realign technology, supply chain and merchandising teams to support strategic growth initiatives.
"Saying goodbye to colleagues and friends is incredibly difficult, but this component of our comprehensive restructuring program is critical to rebuild the foundation of our business; construct a modern, balanced and durable business model; and meet the structural shift in customer shopping and service preferences that we have seen accelerate as a result of COVID-19,” said Bed Bath & Beyond President and CEO Mark Tritton. “Today's action forms part of a series of changes we are making to reduce the cost of our business, further simplify our operations and support our teams so we can emerge from the pandemic in an even stronger position.”
The move comes as consumer demand builds for e-commerce services, and as the retailer seeks to gain more dominance in certain product areas.
"As we work to re-establish our authority in home, baby, beauty and wellness, we are encouraged by the strong customer response to new services such as BOPIS and curbside pickup, and the continued strength in our digital channels as we improve the curation of our product assortment, enhance the ease and convenience of the shopping experience, and make it easier to feel at home,” Tritton added.