Bed Bath & Beyond Inc. to Cut Assistant Store Manager Jobs
Bed Bath & Beyond Inc. (NASDAQ:BBBY), a specialty retailer of home essentials, has announced a downsizing initiative. As part of this initiative, the company will lay off more than 800 employees at hundreds of its stores across the country.
The retailer has indicated that the company is changing its store management structure, following which hundreds of assistant store manager positions will be cut. By getting rid of the extra layer within its store management hierarchy, it could save millions in costs.
The 880 job cuts will affect nearly half of the Bed Bath & Beyond stores within the U.S. and about a dozen buybuy BABY stores owned by the retailer. Bed Bath & Beyond estimates that the downsizing will allow it to save roughly $16.0 million in costs.
In a press release, the CEO of Bed Bath & Beyond, Steven Temares, said, “The actions taken today to accelerate the realignment of our store management will allow us to better support our customer-focused initiatives as well as support our omnichannel growth.”
The layoffs announced by the retailer do not come as a surprise. The American retail industry has lost thousands of jobs this year as digital retail continues to disrupt the traditional brick-and-mortar retail channel. Hundreds of stores have closed since the beginning of this year, and the number of closures and layoffs is growing with each passing day.
The retail industry has e-commerce—primarily Amazon.com, Inc. (NASDAQ:AMZN)—to blame for its downfall. Several famous specialty retailers that have filed for bankruptcies through the first half of this fateful year include BCBG Max Azria, Rue21, Gymboree, Payless ShoeSource and Wet Seal, to name a few.
To avoid meeting the same fate, Bed Bath & Beyond is now actively investing in its digital business in order to drive online sales and thwart competition from the likes of Amazon.
The company chief said, “With the evolution in retail, we continue to strengthen our digital infrastructure and invest heavily in areas such as analytics, information technology, pricing, e-commerce, marketing, supply chain, and our contact centers.”
As of late, Bed, Bath & Beyond employs a workforce of about 65,000 employees across the U.S., Canada, Puerto Rico, and Mexico.
“Bed Bath & Beyond speeds up cuts of 880 store jobs,” Fox Business, August 4, 2017.