Why Wayfair Shares Are Trading Lower Premarket Today

Why Wayfair Shares Are Trading Lower Premarket Today
  • E-commerce marketplace Wayfair Inc W looks to slash 870 jobs to save costs amid the economic slowdown.
  • The job cut constitutes 5% of its global workforce and 10% of the corporate team. 
  • Wayfair also looked towards “substantial” reductions in third-party labor costs.
  • Wayfair looks to book $30 million and $40 million of costs, consisting primarily of employee severance and benefit costs, likely to incur in the third quarter of 2022.
  • In other cost-cutting news, Snap Inc SNAP aborted the development of its Pixy flying selfie camera to cut costs amid economic uncertainties.
  • Recently, Alphabet Inc GOOG GOOGL Google launched initiatives to boost productivity while not ruling out layoff options.
  • Netflix, Inc NFLXTwitter, Inc TWTR, and Tesla, Inc TSLA downsized the workforce amid the slowdown.
  • Price Action: W shares traded lower by 7.49% at $66 in the premarket on the last check Friday.
  • Photo via Wikimedia Commons

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