Bed Bath & Beyond to cut 500 jobs as it powers on with its turnaround effort
- Bed Bath & Beyond is cutting 500 jobs.
- There will be a "significant reduction" in management positions and the "outsourcing of several functions," it said.
- The company has launched a major turnaround effort under new leadership and has been cutting jobs and closing stores to curb its expenses and streamline the business.
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Bed Bath & Beyond is cutting around 500 jobs as it looks to cut costs and streamline the business.
In a press release announcing the news on Thursday, the company said that the cuts were down to a "reorganization and simplification" of its field operations, a "significant reduction in management positions," and the "outsourcing of several functions."
It expects to reduce its annual expenses by around $85 million because of this.
"We are announcing extensive changes today to right-size our organization as part of our efforts to reconstruct a modern, durable business model," CEO Mark Tritton said in a statement to the press.
He continued: "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."
Tritton, formerly chief merchandising officer at Target, has been leading a major turnaround effort at the company after several years of sliding sales.
As well as closing underperforming stores, the company also plans to spend around $400 million on store remodels. In a recent interview with The Wall Street Journal, Tritton explained that the remodeled stores will be fitted out with wider aisles, speedier checkout lines, and will be stocked with less inventory to create a better shopping experience for customers.
Tritton has also been shaking up the executive team; at the end of 2019, six senior executives left the company.
"This is the first in a number of important steps we're taking," Tritton said at the time of announcing the news. "Balancing our existing expertise with fresh perspectives from new, innovative leaders of change, will help us to better anticipate and support our customers in their life journeys and shopping needs."
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