UNION, NJ — Home goods retailer Bed Bath & Beyond announced a restructuring that will eliminate 500 corporate jobs. The restructuring program includes a reorganization and simplification of its field operations, significant reduction in management positions across the business, and outsourcing of several functions.
In December and January, the company said sales were down 5.4% from the previous year due to traffic declines and inventory problems.
The company expects to save $85 million in expenses annually with the job cuts and will also pay $26 million in severance and related costs.
Bed Bath & Beyond’s President and CEO, Mark Tritton said, “We are announcing extensive changes today to right-size our organization as part of our efforts to reconstruct a modern, durable business model. 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.”
The restructuring program consists of a reset of the company’s cost structure that will:
- Simplify and remove spans and layers of management to bring the Company in line with industry best practice;
- Remove duplicative or redundant roles to streamline the organization;
- Reduce and realign regional zones to simplify and restructure field operations; and
- Outsource several functions to allow the Company to focus on core competencies.
As of November 30, 2019, the Company had a total of 1,524 stores, including 981 Bed Bath & Beyond stores in all 50 states, the District of Columbia, Puerto Rico and Canada, 278 stores under the names of World Market, Cost Plus World Market or Cost Plus, 126 buybuy BABY stores, 81 stores under the names Christmas Tree Shops, Christmas Tree Shops andThat! or andThat!, 55 stores under the names Harmon, Harmon Face Values or Face Values, and three stores under the name One Kings Lane.