MW Wayfair's technology investments are allowing it to cut hundreds of tech jobs

By Tomi Kilgore

Stock bounces off a two-year low as Wayfair says it expects to see savings its from job cuts in the second half of 2025

Wayfair Inc. has invested enough money over the years in modernizing its technology that it can now lay off hundreds of technology workers, the company said.

The company disclosed Friday that it was cutting 340 jobs, which represents roughly 12% of its technology group and 2.5% of its total workforce of 13,500 employees as of Dec. 31.

The cuts will leave its tech organization with over 2,500 employees.

The stock (W) rose 3.4% in premarket trading, after closing the previous session at the lowest price since May 3, 2023.

In a blog post, the company said that after significant investments and the "collective effort" of its technology teams, it has undergone a complete "replatforming" of its technology, migrating to the cloud and leaning on generative artificial intelligence to boost productivity.

"With the foundation of this transformation now in place, our technology needs have shifted," the company said in the blog post. "To best support Wayfair's next phase of growth, we must refocus our resources, streamline our operations and ensure our teams are structured for long-term success."

The company will book charges of $33 million to $38 million as a result of the job cuts.

The changes will lead to higher technology costs in the short term due to the reorganization, but the company believes it will start realizing savings in the second half of 2025, with benefits increasing into 2026.

Wayfair's stock, along with the broader retail sector, has been selling off as consumers have been pulling back on discretionary spending due to persistent inflation and worries about how tariffs and policy changes could affect the economy.

Read: Trump's tariffs worry companies. Here's what they're saying about the uncertainty.

For the fourth quarter, the company reported a much wider than expected loss as the number of active customers and orders delivered continued to decline.

The company has reported net losses for 14 straight quarters, according to FactSet data.

The stock has tumbled 33% amid a three-week losing streak through Thursday, which would put it on track for the worst three-week performance since it shed 37.3% in the stretch ending March 10, 2023.

-Tomi Kilgore

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March 07, 2025 09:20 ET (14:20 GMT)

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