Dive Insight:<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\nThis is Wayfair\u2019s third round of restructuring since the summer of 2022. The company laid off 870 employees in August of that year. Last January, an additional 1,750 people were let go. This time, Shah said they decided to err on the side of having too few people versus too many.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n\u201cEach time we used our best judgment, identified the cost target we needed to hit, and believed we were resizing to the right point,\u201d Shah said Friday. \u201cIn many ways, having too many great people is worse than having too few. With too few, you get a lot done quickly, but you may not get everything done that you want. But having too many causes inefficiency, coordination costs, and investments in lower-return activities. That is what we have been experiencing and what we need to end.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nThose affected by this week\u2019s layoffs will receive severance, employee assistance resources and networking support, along with other unspecified benefits and resources. Wayfair did not immediately respond to Retail Dive\u2019s request for comment on Friday regarding details about the severance offered to departing employees.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nThe home sector of retail remains down. At the height of the pandemic, people spent heavily and freely \u2014\u00a0bolstered by federal stimulus money \u2014\u00a0to add comfort and function to their homes during stay-at-home orders. But as those orders were lifted and in-person work, school and leisure activities resumed, consumer spending on home decor dropped off.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nIn a Jan. 11 note, analysts with Wedbush led by Seth Basham said home furnishings retail will likely see a modest rebound this year. Wedbush projects low single-digit year-over-year growth for the industry this year due to housing market rebounds, improving consumer confidence and a more stable competitive environment.<\/span><\/span><\/span><\/span><\/span><\/span>\u00a0The online channel is also expected to outperform the offline market in 2024 by 300 to 400 basis points, and Wayfair is expected to capture some of that share, according to Wedbush.<\/p>\n\u201cAlthough persistent category weakness makes revenue growth challenging, we remain encouraged by the share gains we continue to see,\u201d Shah said. \u201cBased on today’s announcement, in a hypothetical flat revenue environment \u2013 inclusive of the rebuilt roles \u2013 we would now expect to deliver over $600 million of adjusted EBITDA in 2024.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\nWayfair\u2019s third-quarter revenue rose 3.7% year over year to $2.9 billion, the first increase in that metric after nine consecutive quarters of declines.\u00a0The retailer\u2019s operating loss fell 59% year over year to $152 million and its net loss fell 42% to $163 million.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n![\"Retail](\"https:\/\/dmsretail.com\/RetailNews\/wp-content\/uploads\/2022\/05\/RETAIL-ONLINE-TRAINING-728-X-90.png\")
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