A “Store Closing” banner at a Bed Bath & Beyond store in Farmingdale, New York, on Friday, June 6. January 2023.
Johnny Milano | Bloomberg | Getty Images
Bed Bath & Beyond has begun its latest round of layoffs as it fights to stay in business, according to a memo sent to employees Tuesday obtained by CNBC.
The home goods retailer told employees it is eliminating the role of chief transformation officer, held by Anu Gupta, on the same day it reported disappointing third-quarter financial results.
In the email to employees, CEO Sue Gove said the company is reducing its workforce “across our corporate, supply chain and retail portfolio.” She did not say how many employees would be affected, but said it is necessary to ensure Bed Bath’s future.
“While we have taken several important initial steps in our turnaround plan with strong execution, our third quarter 2022 results signal that it will take longer to translate actions into results,” she wrote.
In a statement to CNBC, the company said it is “resetting elements of our foundation.”
“As our strategic direction changes and we streamline our operations, it is necessary to adapt our organization to ensure we are equipped for the future. Unfortunately, this has necessitated the difficult decision to say goodbye to some of our colleagues,” the statement said.
Gupta did not immediately respond to a request for comment.
Bed Bath & Beyond is nearing potential bankruptcy, as sales fall and losses mount. The company’s store shelves have become heavier as suppliers require advance payment, stop shipping goods or change other payment terms. Bed Bath issued a “going concern” warning last week, saying it could run out of funds to cover expenses.
Bed Bath had about 32,000 employees as of February 26, 2022, according to a company filing.
But since then, the company’s workforce has dwindled. In August, it said it would cut about 20% of its corporate and supply chain workforce and close about 150 of the same stores.
Earlier Tuesday, Gove told investors that Bed Bath has made progress in reducing its operating expenses and will cut costs by another $80 million to $100 million, with some of those savings coming from a reduced workforce.
Gove said in the memo on Tuesday that Bed Bath will hold a town hall on Wednesday to discuss its future.