Shares of furniture and home goods retailer Wayfair Inc. (NYSE:W) are trading higher in premarket on Friday.

The company announced a major reduction in its workforce, impacting around 340 employees within its Technology division.

This restructuring is part of an effort to simplify operations and realign the Technology team after making modernization and platform upgrades.

The company projects that the restructuring will incur costs ranging from $33 million to $38 million, mainly for severance, benefits, and transition-related expenses.

Although Wayfair expects that transition costs will initially offset the savings from the restructuring, it anticipates gradual cost reductions starting in the second half of 2025 and continuing into 2026.

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These charges will be spread over the next 12 months, with cash payments made throughout this time.

Wayfair’s restructuring comes after a overhaul of its technology infrastructure, transitioning to a modern, scalable, cloud-based system. With this updated foundation, the company is realigning its resources to better support its long-term objectives.

As part of this shift, Wayfair has made the decision to close its Austin Technology Development Center (TDC), consolidating its operations into core hubs in Seattle, Mountain View, Toronto, Boston, and Bengaluru.

Last month, the company reported fourth-quarter adjusted earnings per share of 25 cents loss, way below the consensus estimate of a loss of 2 cents per share.

Active customers in the fourth-quarter decreased 4.5%, totaling 21.4 million as of December 31, 2024.

Price Action: W shares are trading higher by 3.02% at $34.10 in premarket at last check Friday.

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This article Retailer Wayfair Restructures Technology Team, Cuts 340 Jobs originally appeared on Benzinga.com

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