A ‘Closed’ banner at a Bed Bath & Beyond store in Farmingdale, New York, Friday, January 6, 2023.
Johnny Milano | Bloomberg | Bloomberg | Getty Images
Bed Bath & Beyond has initiated the latest layoffs as it struggles to stay in business, according to a memo sent to employees Tuesday obtained by CNBC.
The home goods retailer told employees it would drop the chief transformation officer role held by Anu Gupta on the same day it reported disappointing financial third quarter results.
In an email to employees, CEO Sue Gove said the company was cutting headcount “across the enterprise, supply chain and store portfolio.” She did not disclose how many employees will be affected, but she said they are necessary to secure the future of Bed Bath.
“We have taken strong first steps in our turnaround plan, but our results in Q3 2022 show that it takes time to turn actions into results.” she writes
Gupta did not immediately respond to a request for comment. In a statement to CNBC, the company said it was “resetting elements of the Foundation.”
“As our company’s strategic direction changes and operations are streamlined, we need to ensure that we are right sizing our organization for the future. A difficult decision had to be made,” the statement said.
The retailer has worked with advisers in recent months to avoid filing for bankruptcy amid deteriorating financial conditions.
Initially, Bed Bath worked with Berkeley Research Group, but recently chose to replace the company with AlixPartners, said a person familiar with the matter.
Bed Bath said it would not comment on “specific relationships.” Instead, the company referred to Gove’s previous comments on him. In a timely manner. ”
AlixPartners declined to comment. A representative for Berkeley Research Group did not immediately respond to a request for comment.
Bed Bath & Beyond is approaching bankruptcy as sales decline and losses widen. The shelves in the company’s stores are bare as suppliers demand advance payments, stop shipping goods and change other payment terms. Bed Bath issued a “going concern” warning last week, saying it may run out of money to cover costs.
As of February 26, 2022, Bed Bath has approximately 32,000 employees, according to company filings.
Since then, however, the company’s workforce has declined. In August, it announced it would cut about 20% of its corporate and supply chain workforce and close about 150 stores with the same name.
Earlier Tuesday, Gove told investors that Bed Bath is cutting operating costs and plans to cut costs by an additional $80 million to $100 million, with some of those savings going to a workforce. He said it was due to reductions.
In a note Tuesday, Gove said Bedbath will hold a town hall on Wednesday to discuss its future.
