Wayfair laying off 5% of global workforce amid e-commerce slump

As demand for e-commerce continues to cool down, Boston-based Wayfair is laying off 870 employees. The online furniture and home decor retailer indicated in a filing to the U.S. Securities and Exchange Commission (SEC) that the cuts will affect five per cent of its global workforce and 10 per cent of its corporate team.

In a memo to staff on August 19, 2022, CEO Niraj Shah said he takes responsibility for the impact this reduction will have on hundreds of workers.

“We were seeing the tailwinds of the pandemic accelerate the adoption of e-commerce shopping, and I personally pushed hard to hire a strong team to support that growth,” Shah said. “This year, that growth has not materialized as we had anticipated. Our team is too large for the environment we are now in, and unfortunately we need to adjust.”

Wayfair did not disclose how many employees in North America are affected by the cuts.  The company said impacted staff will receive an invitation to meet with one of their leaders and a talent team member.

According to Wayfair’s website, the online retailer has 18 fulfillment facilities and 38 delivery centres across Canada, the U.S., the U.K., and Germany.

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Termination agreements for Wayfair employees

In its layoff announcement, Wayfair said it will provide affected staff members with severance pay based on geography, tenure, and level. The company added that eligible workers will also receive a payout of the 2022 Q1 corporate bonus.

Canadian employees and senior executives at Wayfair are owed full severance pay when they lose their jobs due to downsizing or corporate restructuring. Severance can be as much as 24 months’ pay, depending on a number of factors.

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WATCH: Employment lawyer Lior Samfiru explains what rights employees have if they are being fired or let go on an episode of the Employment Law Show.

Before you accept any severance offer, have an experienced employment lawyer at Samfiru Tumarkin LLP review it and your employment contract. We can tell you if what you have been provided is fair and how to get proper severance if it falls short of what you are actually owed.

If you don’t receive the full amount (which happens often), you have been wrongfully dismissed and are entitled to compensation.