A “Store Closing” banner on a Bed Bath & Beyond retailer in Farmingdale, New York, on Friday, Jan. 6, 2023.
Johnny Milano | Bloomberg | Getty Images
Bed Bath & Beyond has begun its newest spherical of layoffs, because it fights to remain in business, based on a memo despatched to staff Tuesday that was obtained by CNBC.
The dwelling items retailer advised staff that it’s eliminating the chief transformation officer position, which is held by Anu Gupta, on the identical day it reported disappointing fiscal third-quarter outcomes.
In the e-mail to staff, CEO Sue Gove mentioned the corporate is decreasing its workforce “across our corporate, supply chain and store portfolio.” She didn’t say what number of staff could be affected, however mentioned it’s needed to make sure Bed Bath’s future.
“While we have taken several important initial steps in our turnaround plan with strong execution, our Q3 2022 results signal that it will take longer to translate actions into outcomes,” she wrote.
Gupta didn’t instantly reply to a request for remark. In a press release to CNBC, the corporate mentioned it’s “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 equipped for the future. Unfortunately, this has necessitated making the difficult decision to say goodbye to some of our colleagues,” the assertion mentioned.
The retailer has been working with advisors in current months to stave off a chapter submitting whereas its monetary place worsened.
Initially, Bed Bath was working with Berkeley Research Group, however opted to interchange the agency with AlixPartners not too long ago, mentioned folks accustomed to the matter, who declined to be named as a result of they weren’t licensed to debate the matter.
Bed Bath mentioned it does not touch upon “specific relationships.” The firm as a substitute referred to earlier feedback from Gove: “We have a team, internally and externally, with proven experience helping companies successfully navigate complex situations and become stronger. Multiple paths are being explored and we are determining our next steps thoroughly, and in a timely manner.”
AlixPartners declined to remark. A consultant for Berkeley Research Group did not instantly reply to a request for remark.
Bed Bath & Beyond is approaching a possible chapter, as its gross sales decline and losses develop. The firm’s retailer cabinets have gotten barer as suppliers demand upfront fee, cease transport items or change different fee phrases. Bed Bath issued a “going concern” warning final week, saying it might run out of funds to cowl bills.
Bed Bath had about 32,000 staff, as of Feb. 26, 2022, based on an organization submitting.
But since then, the corporate’s worker rely has shrunk. In August, it mentioned it might minimize about 20% of its company and provide chain workforce and shut about 150 of its namesake shops.
Earlier Tuesday, Gove advised buyers that Bed Bath has made progress in decreasing its working bills and can minimize prices by an extra $80 million to $100 million, with a few of these financial savings coming from a lowered workforce.
Gove mentioned within the memo Tuesday that Bed Bath will maintain a city corridor on Wednesday to debate its future.
