Wayfair’s (NYSE:W) stock jumped more than 11% intra-day today following the online furniture and home goods retailer’s announcement of a 13% workforce reduction in a bid to restructure the company.

Wayfair’s CEO, Niraj Shah, in a message on the company’s website, acknowledged that Wayfair had expanded its team excessively during a period of economic prosperity, deviating from its foundational principles. This overexpansion leads to the elimination of about 1,650 positions.

The Boston-based company anticipates these cuts will result in annual savings exceeding $280 million, contributing to a significant increase in adjusted earnings before interest, tax, depreciation, and amortization in 2024.

Wayfair also expects to incur up to $80 million in expenses related to the layoffs, mainly covering severance and benefits. The majority of these costs are projected to be recorded in the first quarter of 2024.

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