A “Store Closing” banner at a Bed Bath & Beyond store on Friday, Jan. 6, 2023 in Farmingdale, New York.
Johnny Milano | Bloomberg | Getty Images
bed Bath and Beyond The company has begun its latest round of layoffs as it fights to stay in business, according to a memo sent to employees Tuesday by CNBC.
The home goods retailer told employees it was eliminating the role of chief transformation officer, which Anu Gupta held, on the same day it Reported disappointing financial third quarter results.
In an email to employees, CEO Sue Gove said the company was reducing its workforce “across our corporate, supply chain and store portfolios”. She did not say how many employees would be affected, but said it was necessary to ensure Bed Bath’s future.
“While we have taken several important initial steps in our turnaround plan with strong execution, our 2022 third quarter results indicate that it will take longer to translate actions into results,” he wrote.
In a statement to CNBC, the company said it is “resetting elements of our foundation.”
“As our strategic direction changes and we streamline our operations, it is essential to right-size our organization to ensure we are equipped for the future. Unfortunately, it has also meant saying goodbye to some of our associates. Difficult decisions need to be made,” the statement said.
Gupta did not immediately respond to a request for comment.
bed Bath and Beyond heading towards a possible bankruptcy, As its sales decline and losses increase. Company store shelves become barred as suppliers demand advance payment, stop shipping goods or change other payment terms. bed bath released A “Worrying Concern” Alert Last WeekStating that it may have run out of funds to cover the expenses.
Bed Bath had about 32,000 employees as of February 26, 2022, according to a company filing.
But since then, the company’s workforce has dwindled. In August, he said it would Cut about 20% of its corporate and supply chain workforce And have closed about 150 stores in his name.
Earlier Tuesday, Gove told investors that Bed Bath has made progress in reducing its operating expenses and will cut costs by an additional $80 million to $100 million, with some of the savings coming from a reduced workforce.
Gove said in the memo on Tuesday that Bed Bath would hold a town hall on Wednesday to discuss its future.