Employment Law

Wayfair Layoffs: 50 Ontario workers lose jobs, 1,650 cut globally due to overhiring

Some home decor items, like those sold by Wayfair Canada.

Wayfair is cutting 50 jobs in Ontario as part of a 13% global reduction of its workforce. The cuts at the online furniture retailer, which affect a total of 1,650 employees across the company, were made because they had ‘overhired’.

This move, shared by CEO Niraj Shah, is described as a strategic adjustment to align with the company’s operational goals, rather than a response to financial loss.

Wayfair’s shares on the stock market were up as much as 15% on Friday morning following the news.

What’s happening at Wayfair?

Wayfair’s decision to reduce its workforce is presented as part of an organizational strategy to realign its operations and workforce with the company’s strategic objectives. Shah points to an overexpansion in hiring during economic growth periods, suggesting a need to revert to the company’s core principles.

This recent workforce reduction is a continuation of previous cutbacks that took place in 2022 and early 2023. The aim, as stated, is to achieve a more streamlined and efficient organizational structure, promoting stability and adaptability in the market.

Impact on Canadian workforce

The global workforce reduction by Wayfair has direct implications for its Canadian operations, with Ontario experiencing a proportion of the layoffs. Specifically, around 50 positions in Ontario are included in this layoff.

The company told media that it has reported these changes to the Ministry of Labour, Immigration, Training and Skills Development and is providing affected employees with severance packages and support through its employee assistance program.

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Termination agreements for Wayfair employees

In Canada, non-unionized employees at Wayfair are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This includes individuals working full-time, part-time, or hourly in Ontario, Alberta, and B.C.

People working “on contract” or as a contractor may also be owed severance pay — given that many employees in Canada are often misclassified as independent contractors.

Calculating Your Severance Pay

Your severance pay is calculated based on several factors. These include:

  • Your length of service at the company
  • Your age
  • The position and your responsibilities
  • Any bonuses or benefits you receive
  • The ease or difficulty of finding new employment.

These factors contribute to determining the size of your severance package, which can be as much as 24 months’ pay. It’s essential to note that the specific amount can also vary based on the terms of your employment contract.

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.

Don’t sign on the dotted line!

Do not accept any initial severance offer, termination papers, or exit agreement that your employer provides you with.

Once you sign back these documents, you eliminate your ability to negotiate your severance package.

• Severance Pay in Ontario
• Alberta severance packages
• Understanding severance in B.C.

If an employee does not receive the proper amount of severance pay when they lose their job, they have been wrongfully dismissed. An employment lawyer at Samfiru Tumarkin LLP can analyze your situation and explain how much compensation you are truly entitled to.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay.

Severance for provincially regulated employees
Rights to severance for tech sector staff
• Severance packages during mass layoffs

Talk to an employment lawyer

Lost your job at Wayfair? Contact our team immediately.

The knowledgeable team of employment lawyers at Samfiru Tumarkin LLP has secured proper compensation for tens of thousands of non-unionized individuals across the country.

In addition to severance package negotiations, our lawyers have experience securing solutions for the following legal matters:

If you are a non-unionized employee in Ontario, Alberta, or B.C. who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.

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Consult with Samfiru Tumarkin LLP. We are one of Canada's most experienced and trusted employment, labour and disability law firms. Take advantage of our years of experience and success in the courtroom and at the negotiating table.

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