UNION, N.J. – Bed Bath & Beyond has announced a major realignment of its organizational structure that the company says will generate future annual pre-tax cost savings of approximately $150 million.
As part of the realignment, the company has implemented a significant workforce reduction of 2,800 roles from across its corporate headquarters and retail banner stores, effective immediately.
The company previously cut 375 jobs from facilities in Florida and New Jersey in June.
This action is designed to further reduce layers at the corporate level, significantly reposition field operations to better serve customers in a digital-first shopping environment, as well as realign technology, supply chain and merchandising teams to support strategic growth initiatives, according to the company.
“Saying goodbye to colleagues and friends is incredibly difficult, but this component of our comprehensive restructuring program is critical in order to rebuild the foundation of our business, construct a modern, balanced and durable business model, and meet the structural shift in customer shopping and service preferences that we have seen accelerate as a result of COVID-19,” said Mark Tritton, Bed Bath & Beyond’s president and CEO.
Tritton added that the company has made progress this year, and these interventions are designed to allow the company to maintain its financial flexibility and re-invest where it matters most to its customers and people.
As the company works to re-establish its authority in the home category, among others, Tritton said it is encouraged by the strong customer response to new services such as ‘buy online pick up in store’, or BOPIS, as well as curbside pickup, and the continued strength in its digital channels as it improves the curation of the product assortment.