A “Store Closing” banner at a Bed Bath & Beyond store in Farmingdale, New York on Friday, January 6, 2023.
Johnny Milano | Bloomberg | Getty Images
Bed Bath & Beyond has begun its latest round of layoffs as it struggles to stay in business, according to a memo sent to employees Tuesday and obtained by CNBC.
The housewares retailer informed its employees that it is stepping down the role of chief transformation officer held by Anu Gupta on the same day it reported disappointing third-quarter results.
In the email to employees, CEO Sue Gove said the company is reducing its workforce “across our corporate, supply chain and store portfolio.” She didn’t say how many employees would be affected, but said it was necessary to secure Bed Bath’s future.
“While we took several important first steps in our turnaround plan with strong execution, our results for Q3 2022 signal that it will take longer to translate action into results,” she wrote.
Gupta did not immediately respond to a request for comment. In a statement to CNBC, the company said it was “resetting elements of our foundation.”
“As our strategic direction changes and we streamline our operations, it is necessary to right-size our organization to ensure we are prepared for the future. Unfortunately, this has necessitated the difficult decision to say goodbye to some of our colleagues,” the statement said.
The retailer has worked with advisers to avert a bankruptcy filing in recent months as its financial position deteriorated.
Bed Bath originally worked with Berkeley Research Group but recently decided to replace the firm with AlixPartners, said people familiar with the matter, who declined to be identified because they were not authorized to discuss the matter .
Bed Bath said it does not comment on “specific relationships”. Instead, referring to Gove’s earlier comments, the company said: “We have a team, internal and external, with a proven track record of helping companies succeed in complex situations and grow stronger. Multiple avenues are being explored and we are determining our next steps thoroughly and in a timely manner.”
AlixPartners declined to comment. A Berkeley Research Group representative did not immediately respond to a request for comment.
Bed Bath & Beyond nears possible bankruptcy as sales plummet and losses mount. The company’s store shelves have become emptier as suppliers demand prepayment, stop shipping goods, or change other payment terms. Bed Bath issued a “going concern” warning last week and said it could run out of funds to cover spending.
According to a company filing, as of February 26, 2022, Bed Bath had about 32,000 employees.
Since then, however, the number of employees in the company has decreased. In August, the company said it would shed about 20% of its corporate and supply chain workforce and close about 150 of its namesake stores.
Gove told investors earlier Tuesday that Bed Bath had made progress in reducing its operating expenses and would cut costs by an additional $80 million to $100 million, with some of those savings coming from a reduced workforce.
Gove said in Tuesday’s memo that Bed Bath would hold a town hall on Wednesday to discuss its future.
https://www.cnbc.com/2023/01/10/bed-bath-beyond-lays-off-more-employees-as-it-fights-to-survive.html Bed Bath & Beyond lays off more employees as it struggles to survive