Bed Bath & Beyond Inc. will cut 500 jobs amid restructuring, and plans to simplify its field operations and outsource several business functions.
The restructuring program is expected to save the Union-based company $85 million.
“We are announcing extensive changes today to right-size our organization as part of our efforts to reconstruct a modern, durable business model. We do not take this action lightly but, while difficult, these measured and purposeful steps are necessary,” said Chief Executive Officer Mark Tritton in a statement. “This will reset our cost structure, allowing us to re-invest where it matters most to our customers, to re-establish our authority in the home space.”
In line with the company’s preliminary strategic plan which includes action across five strategic pillars, namely product, price, promise, place, and people, the restructuring program includes plans to outsource several business functions; reduce and realign regional zones to simplify field operations; remove duplicative roles, and remove layers of management.
Bed Bath expects the restructuring program to cost approximately $26 million, mostly for severance and related costs, which will all be expensed in the fiscal 2019 fourth quarter.