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From Home Furnishing Business

Terminated Wayfair Employees to Receive at Least 10 Weeks’ Severance Pay

The U.S.-based employees who were terminated last week by e-commerce giant Wayfair will receive a minimum 10 weeks’ pay as part of a severance package outlined by CEO and co-founder Niraj Shah.

In an open letter to employees that was published on Wayfair’s website, Shah said those eligible for first-quarter bonuses will receive those payments, as well as continued vesting of existing equity through October. In addition, the affected employees will have access to the company’s Employee Assistance Program and various outplacement services.

“We were seeing the tailwinds of the pandemic accelerate the adoption of e-commerce shopping, and I personally pushed hard to hire a strong team to support that growth,” Shah’s letter said. “This year, that growth has not materialized as we had anticipated. Our team is too large for the environment we are now in, and unfortunately we need to adjust.”

Nearly 900 Wayfair employees were terminated, but it wasn’t immediately clear how many were based outside the U.S.

Shah said the job cuts fall into three broad categories: Thinning out management layers to enable team members to focus on execution; aligning the work better with its strategic priorities; and adjusting areas that have simply grown faster than current revenue trajectory can support.

“The individuals being impacted have not only made tremendous contributions to the company as colleagues but have enriched us all as our partners and friends,” he said. “We’re grateful to have worked alongside them, and we will strongly support our colleagues in their next endeavors.”

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