Bed Bath & Beyond owner to lay off 20% of its workforce
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- Bed Bath & Beyond’s owner said in a regulatory filing that it will cut one-fifth of its workforce.
- Beyond, Inc., formerly known as Overstock, bought the BB&B brand after the original went bankrupt.
- As an online-only retailer, the company says the cuts will support its “affinity and data monetization model.”
The parent company of Bed Bath & Beyond plans to lay off one-fifth of its workforce in a move to save $20 million per year.
Beyond, Inc., formerly known as Overstock, said in a regulatory filing on Tueday that the cuts will “align to its asset-light business that supports an affinity and data monetization model.”
The move follows a September announcement that the company reached a deal to sell its Utah headquarters. The two measures are expected to reduce the annual budget by $65 million, said CFO Adrianne Lee.
“As we continue to transform and build out our model, we intend to monetize data through our enhanced CRM and database capabilities, stand up a global loyalty program across both our owned and partnered brands, and leverage our IP through a variety of global licensing partnerships,” company president Dave Nielsen said in a statement Thursday.
Earlier in the week, Beyond and Kirkland’s Home announced a $25 million deal to open small-format, 15,000 square-foot “neighborhood” Bed Bath & Beyond locations across the US. The new concept will include a curated assortment of classic BB&B products, the companies said.
Overstock bought the BB&B intellectual property last year after the original housewares retailer went bankrupt, turning the former big box brand into an online-only operation.
The $21.5 million deal covered trademarks, internal business data, and e-commerce platforms, including websites and mobile apps, but no physical stores or inventory.
The company said at the time that the additional Bed Bath & Beyond loyalty program shoppers tripled Overstock’s existing customer base.
Since renaming itself to Beyond, Inc., the company has managed to grow customers by 21%, but sales have suffered, with delivered orders declining by 19%, according to its third-quarter results released on Thursday.
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This article was originally published by Dominick Reuter at All Content from Business Insider (https://www.businessinsider.com/bed-bath-and-beyond-owner-layoffs-2024-10).
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