- Thomson Reuters
- Wayfair shares tumbled the most since October on news that the company will lay off over 500 from its workforce.
- The company’s Boston headquarters will shed 350 jobs.
- Trading volumes spiked on the news.
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Shares tumbled as much as 10.36% Thursday, the biggest intra-day move since October. Wayfair plans to lay off 3% of its global workforce, including 350 employed at its headquarters in Boston. The Boston Globe originally reported the job cuts.
Wayfair has never turned a profit, though the company has a strong record in sales growth. The workforce cuts are part of a broader restructuring effort meant to increase efficiency at the online retailer, Wayfair told Business Insider in a statement.
The last time Wayfair shares tumbled more was after the company reported disappointing third-quarter earnings at the end of October. Shares fell almost 19% that day.
On earnings day in October, 12.4 million shares traded, versus around 4.6 million by mid-afternoon Thursday. On a typical day, 1.94 million Wayfair shares trade.
A Wayfair engineer told Business Insider that workers inside the company were calling the layoffs the “Valentine’s Day massacre.” CEO Niraj Shah told employees about the layoffs via a companywide email Thursday morning.
- Markets Insider