Bed Bath & Beyond reorg leads to 2,800 job cuts

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Bed Bath & Beyond Inc. said late Tuesday that its planned reorganization to focus on online sales will result in 2,800 job cuts from corporate headquarters and retail stores, effective immediately. The cuts are designed to strip management layers and “significantly reposition field operations to better serve customers in a digital-first shopping environment,” the company said. The reorganization will result in about $150 million in annual pre-tax cost savings, Bed Bath & Beyond said. The company is taking steps to improve its shopping experience in store and online, building on the recent introduction of its buy online, pickup in store option and curbside pickups in addition to plans to launch “an array of new customer-inspired owned brands in 2021,” it said. “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,” Chief Executive Mark Tritton said in a statement. “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.” Shares of Bed Bath & Beyond fell 2% in the extended session Tuesday after ending the regular trading day up 0.5%.
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