Bed Bath & Beyond Inc. is cutting approximately 2,800 jobs across the company in what it’s calling a major realignment of its organizational structure, resulting in an estimated future annual pre-tax cost savings of approximately $150 million, the company announced Tuesday evening.
Through this, Union-based Bed Bath aims to reduce corporate layers and reposition in-store operations to better serve customers in a digital-first shopping environment, as well as tosaid realign technology, supply chain and merchandising teams to support strategic growth initiatives, the company said in its announcement.
This is just a portion of the anticipated savings from the comprehensive restructuring plan announced in February, which is expected to deliver annualized improvement in earnings before interest, income taxes, depreciation and amortization, or EBITDA, of between approximately $250 million to $350 million, excluding one-time costs, over the next two-to-three years.
“Saying goodbye to colleagues and friends is incredibly difficult, but this component of our comprehensive restructuring program is critical to rebuild the foundation of our business, construct a modern, balanced and durable business model, and meet the structural shift in customer shopping and service preferences that we have seen accelerate as a result of COVID-19,” said Chief Executive Officer Mark Tritton in a prepared statement. “Today’s action forms part of a series of changes we are making to reduce the cost of our business, further simplify our operations and support our teams so we can emerge from the pandemic in an even stronger position.”
Tritton went on to say that “purposeful interventions” such as these job cuts help the company maintain its financial flexibility and re-invest “where it matters most to our customers and our people.”
The savings will help the company fund a number of growth initiatives such as building on its buy-online-pickup-in-store or BOPIS, and curbside pickup programs, in addition to supporting plans to launch a slew of private brands in 2021 and transform the company’s supply chain.