One thing to remember when it comes to businesses is that the layoffs in every company and part and parcel of the business. However, it is also true that whenever a layoff or layoffs take place inside the company then there is a virtual siren which gets triggered meaning that investors should remain cautious about the firm. This is because most of the people believe that if the company is laying off people, there is something going wrong inside. Now, this might be true and there have been cases where this has not been true.
Anyways, we have a new report regarding layoffs at Wayfair which is a popular online furniture store just like Ikea. However, the number of people losing their job at Wayfair is a cause of concern for everyone related to the firm. Because the company has announced they will layoff 550 jobs which equates to 3% of its workforce. These layoffs, or a majority of them, will take place in Wayfair’s Boston headquarters while some will lose their jobs in European office situated in Berlin as well.
It is worth noting that Wayfair has 17,000+ employees working for them worldwide and 3% of that workforce being laid off is still a big percentage. Also, this layoff news has not been received well by the markets as the stocks of Wayfair have gone down by 10% to $86 per share on Thursday afternoon. This shows that the market also feels that something is not right at Wayfair and it might also be given a ‘Sell’ rating very soon.
If we look at Wayfair’s stocks since last year, their value has gone down by 28% which tells you something about the company’s ongoing difficulties. Also, it is to be noted that Wayfair has never made a profit in 18 years of its existence but its sales have increased as more and more people start to buy furniture online.