A “Store Closing” banner on a Bed Bath & Beyond store in Farmingdale, New York on Friday, January 6, 2023.
Johnny Milan | Bloomberg | Getty Images
Bed bath and beyond began its latest round of layoffs as it fights to stay in business, according to a memo sent to employees on Tuesday and obtained by CNBC.
The home goods retailer told employees it was eliminating the role of chief transformation officer, which is held by Anu Gupta, the same day it announced disappointing third-quarter results.
In the email to employees, CEO Sue Gove said the company was downsizing “across our corporate, supply chain and store portfolio.” She did not say how many employees would be affected, but said it was necessary to secure Bed Bath’s future.
“While we have achieved several important initial milestones in our turnaround plan with solid execution, our third quarter 2022 results indicate that it will take longer to translate actions into results,” she wrote.
In a statement to CNBC, the company said it was “resetting elements of our foundation.”
“As our strategic focus shifts and we streamline our operations, there is a need to right-size our organization to ensure we are equipped for the future. Unfortunately, this has forced us to make the difficult decision to say goodbye to some of our colleagues,” the statement said.
Gupta did not immediately respond to a request for comment.
Bed Bath & Beyond nears potential bankruptcy as sales decline and losses mount. Company store shelves have become emptier as suppliers demand upfront payment, stop shipping goods or change other payment terms. Bed Bath issued a ‘continuity’ warning last week, saying it could run out of funds to cover expenses.
Bed Bath had about 32,000 employees as of Feb. 26, 2022, according to a company filing.
But since then, the number of employees of the company has decreased. In August, it announced it would cut about 20% of its corporate and supply chain workforce and close about 150 of its namesake stores.
Earlier on Tuesday, Gove told investors that Bed Bath had made progress in reducing its operating expenses and would cut costs by a further $80 million to $100 million, with some of those savings coming from a workforce. reduced work.
Gove said in the memo on Tuesday that Bed Bath will hold a town hall on Wednesday to discuss its future.